Combined reports gathered this April did not show promising signs in an improving housing sector and for the overall US economy. Despite the bleak performance of the market, financial advisors at HomeUnion Investment Properties will give you a sound advice to continue your real estate investments. The downturn is not permanent and is expected to be in the short term only.
The manufacturing sector has also suffered severely by the 13 percent appreciation of the dollar against the different currencies trading in the United States. US stocks also fell short. Organic growth in corporate results is pulling the stock prices down. The prices of US government debt also fell and as a result, the dollar weakened against other currencies.
Despite the challenging times and weakness experienced by different market sectors, the housing sector still remains favorable due to a strengthened labor market.
In a separate report, the Labor Department disclosed that there is a rise in the number of Americans seeking unemployment assistance. The trend suggests that the jobs market has continued to tighten as there is an increase in the long term unemployed finding jobs. Claims for the state unemployment aid rose by 12,000. By the end of April 11, the total number reached 294,000.
However, the claims should not be the direct basis for the growing unemployment rate since the number of claims tend to be unstable especially that holidays like Easter and school spring break are moving. The model that the government uses is thrown off track due to these seasonal fluctuations.
It is to be noted though that the number of people seeking the unemployment benefits was the lowest since December of 2000. An economist at Barclays said that their company has continued to view the unemployment claims data as an improvement in the labor market.
While people are receiving pay check and lending has eased, the trend of attracting home buyers is expected within the year. America’s banking giants JP Morgan and Bank of America reported that there is a significant increase in mortgage lending in the first quarter of this year. It is expected that the numbers will double in the next quarters.