Thursday, April 5, 2007

Housing Bust Raises Unemployment Nationally

"U.S. Initial Jobless Claims Rose to 321,000 Last Week."

"Construction and housing-related businesses and auto makers are trimming staff." Bloomberg.com

Today, the Labor Department reported increased unemployment. The news could be dismissed as a modest correction in an overall stable labor environment or as the first signs of increased recession risk.

More jobless might mean more foreclosures and more unsold homes (fewer buyers).

However, more jobless might mean more chance that the Federal Reserve might cut interest rates and thereby lower adjustable mortgage rates (not likely at the moment).

What does all this mean for odds on any housing bailout?

1 comment:

Lori said...

Hi, great reading your post