The economy added 165,000 jobs in April—rebounding from a weak report for March—and the unemployment rate dropped to 7.5.percent, its lowest level since December 2008, the Bureau of Labor Statistics reported Friday. Economists had forecast payrolls would grow by 153,000, and that the unemployment rate would remain at 7.6 percent. 

Payroll growth for March, originally reported at 88,000, was revised upward to 138,000, and February was revised to 332,000 from 268,000.

Average weekly hours fell to 34.4—the equivalent of job losses—while average hourly earnings rose.

Compared with the disappointing report for March, the April report showed very few negatives.

The labor force—the sum of employment and unemployment—rose for the month with employment increasing 293,000 and unemployment falling 83,000. Unemployment, as used in this report, is a defined term including individuals meeting three tests: out-of-work, available-for-work, and looking-for-work.

The labor force participation rate remained at 63.3 percent, low by historical standards. It had been 66.0 percent before the recession began in December 2007. The current rate is the lowest since December 1978, in part reflecting an increase in school enrollment, which could affect the “available-for-work” test.

The employment-population ratio, a broad measure of the employment status of all those over 16, rose to 58.6 percent, but is still far below 62.7 percent in December 2007. The inverse of the employment-population ratio is a crude unemployment measure, suggesting 41.4 percent of all those over 16 do not have jobs, without adjustment for students or otherwise not seeking jobs.

The net increase in payroll jobs came despite a loss of 11,000 government jobs—8,000 federal jobs, including 3,500 postal jobs. Local governments shed 2,000 jobs as state payrolls contracted by 1,000.

Most industry sectors showed gains, but the number of construction jobs fell a net 6,000. Most of the job losses involved non-residential construction. 
 
Despite a drop in builder confidence, the number of residential construction jobs—including specialty contractors—increased 13,300.

The information sector dropped 9,000 jobs in April, primarily in the movie and sound recording industry, which could have regional impacts on the coasts.

Manufacturing jobs, according to the report, were flat in April after growing by a scant 2,000 in March, suggesting an impact of federal budget sequester cuts on defense-related employment, though the report does not contain a specific line item for defense related manufacturing or employment.

Professional and business services added 73,000 jobs in April, including almost 31,000 temp jobs, which are often considered an entry point to permanent employment. Temp jobs though can also reflect a lack of confidence on the part of employers.

The financial sector added 9,000 jobs, most of which were credit-related positions, such as underwriters, on the eve of the home-buying season. That said, the number of real estate jobs contracted by almost 2,000.

The weak spot in the report was the cut in the average workweek, which slipped back from 34.6 hours last month. Cutting hours is a technique used by some businesses to reduce payroll spending while at the same time keeping trained workers available for a rebound in the economy. The reduction in hours though—despite an increase in average hourly earnings—reduces average weekly earnings, which fell by $3.29 in April and will have an impact on consumer demand.

Reducing average weekly hours could also reflect a shift to part-time employment which rose 107,000 in April in a run-up to the implementation of the Affordable Care Act next January.

With the reduction in hours and average weekly earnings, aggregate wage income fell in April. Wages, on average, represent about 55 percent of total personal income, which fuels personal consumption spending.

The continued drop in the unemployment rate, which has fallen for three straight months, has added significance with the Federal Reserve having said the target fed funds rate would remain at its historic low, 0 to ¼ percent, at least until the unemployment rate fell below 6.5 percent. The Fed also set an inflation target for keeping rates low and continuing its program of purchasing mortgage securities and investing in U.S. Treasury securities. Inflation has remained tame since the Fed announced its plans for reversing course on monetary policy.

The number of persons out of work for 27 weeks or longer—“long term unemployed”—fell 258,000 to 4,353,000 the lowest level since May 2009 but the number of person unemployed 15 to 26 weeks rose 230,000.

Hear Mark Lieberman every Friday on P.O.T.U.S. radio, Sirius-XM 124, at 6:20 am eastern time. By: Mark Lieberman, Five Star Institute Economist

 
Trulia Inc. recently released the results of its Real Estate Regrets survey, which reveals the most-common housing mistakes today’s home buyers and renters should avoid during spring house hunting season.
According to the survey, buyers are feeling the pressure of rising home prices this spring: 75 percent of Americans say it’s better to buy a home now than a year from now. However, fewer than 1 in 3 Americans (32 percent) agree it would be better to sell now than a year from now. Patient sellers, along with little new construction, fewer foreclosures, and underwater borrowers, have pushed inventory to a 12-year low, creating a seller’s market. This year’s housing season will likely cause aggressive buyers to scramble in order to try to win tough bidding wars and overcome stiff competition–putting them at risk of making real estate mistakes they will regret.

More than half of Americans who were involved in the process of choosing their current home (52 percent) have at least one regret about their current home or the process of choosing it. A common theme of the top regrets is Americans not investing enough in their home. Top regrets include choosing a home that’s too small, renters wishing they had bought instead of renting, homeowners regretting not remodeling more, and not being financially secure. When comparing homeowners to renters who were both involved in the process of choosing their current home, renters are more likely to have housing regrets – 56 percent versus 50 percent. Among different age groups who were involved in the process of choosing their current home, Millennial homeowners (age 18 to 34) are far more likely to have housing regrets than homeowners age 55 or older – 75 percent versus 36 percent.

C.A.R.

The economy added 88,000 jobs in March and the unemployment rate dropped to 7.6.percent, its lowest level since December 2008, the Bureau of Labor Statistics (BLS) reported Friday. Economists had forecast payrolls would grow by 200,000 and that the unemployment rate would remain at 7.7 percent.

Job growth for February, originally reported at 236,000, was revised upward to 268,000, while was January revised up to 148,000, up from 119,000.  Average weekly hours rose along with average hourly earnings.

as reported by: dsnews.com

Fannie Mae and Freddie Mac completed more than 540,000 foreclosure prevention actions during 2012, bringing the total foreclosure prevention actions to nearly 2.7 million since the start of conservatorship in 2008. These actions, which have helped more than 2.2 million borrowers stay in their homes, are detailed in the Federal Housing Finance Agency’s fourth quarter 2012 Foreclosure Prevention Report, also known as the Federal Property Manager’s Report.
The quarterly report has information on state delinquencies and an updated, interactive Borrower Assistance Map for Fannie Mae and Freddie Mac mortgages, with information on delinquencies, foreclosure prevention activities and Real Estate Owned (REO) properties.

Also noted in the report:
•The number of Fannie Mae and Freddie Mac delinquent borrowers declined 14 percent in 2012 as mortgage delinquencies dropped in every state except New Jersey and New York.
•Foreclosures continued a downward trend with foreclosure starts in the fourth quarter falling to the lowest level since the third quarter of 2008.
•46 percent of troubled borrowers who received loan modifications in the fourth quarter had their monthly payments reduced by more than 30 percent.
•More than one-third of loan modifications completed in the fourth quarter included principal forbearance.
•More than 32,600 short sales and deeds-in-lieu were completed in the fourth quarter, bringing the total for 2012 to nearly 141,500.
•REO inventory continued to decline as property dispositions outpaced property acquisitions during the fourth quarter.

Foreclosures are dropping nationwide, but some states are still struggling with elevated levels of distressed homes.

For the sixth month in a row, Florida has the highest foreclosure rate in the nation; in February, it showed more than triple the national average. Florida’s foreclosure filings are up 20 percent in February from year-ago levels and are at a 16-month high, RealtyTrac reports in its latest foreclosure report.

“At a high level the U.S. foreclosure inferno has been effectively contained and should be reduced to a slow burn in the next two years,” says Daren Blomquist, vice president at RealtyTrac. “But dangerous foreclosure flare-ups are still popping up in states where foreclosures have been delayed by a lengthy court process or by new legislation making it more difficult to foreclose outside of the court system. Foreclosure starts have been steadily building in those states over the last several months and likely will end up as bank repossessions or short sales later this year.”

Blomquist notes that these new foreclosure hot-spots include states like Washington, in which for the last seven consecutive months rising foreclosure activity placed the state fifth on the list among highest foreclosure rates nationwide -- its first time. Maryland was also a new addition to the top 10 list for highest foreclosure rates.

The following are the 10 states with the highest foreclosure rates in the country, as of February:

1. Florida

2. Nevada

3. Illinois

4. Ohio

5. Washington

6. Arizona

7. Georgia

8. Utah

9. Maryland

10. Michigan

Foreclosures are falling in California, dropping it out of the top 10 states for highest foreclosure rates in the nation for the first month since December 2006.

Daily Real Estate News | Friday, March 15, 2013
National Association of Realtors

Realtor.com released its February data on the U.S. housing market this week, offering valuable insight into the latest real estate trends. Realtor.com's February 2013 national housing data indicates that listing inventories increased 1.15 percent month-over-month; median age of inventory was at 98 days, a 9.26 percent decrease month-over-month; and median list prices were slightly higher month-over-month at $189,900. These numbers show that home buyers are getting an early start on the spring season despite the fact that inventories recently hit record lows.
Annual inventory decreases of -15.97 percent are consistent with a gradual, yet persistent downward trend that has been occurring over the last two years. From January 2013 to February 2013, the median age of inventory decreased in 145 of the 146 markets tracked by realtor.com. The national median list price also reversed its downward trend, rising by 1.55 percent over the month of February and 1.01 percent on an annual basis. In addition, the number of markets experiencing a decline in home prices is shrinking, implying more good news for the housing market and U.S. economy at large.

Pronounced regional differences in the strength of the housing market continue to exist. Several areas in California are experiencing the highest increases in list prices coupled with the largest inventory declines.
•Nearly all of the markets with the largest year-over-year declines in their for-sale inventories in February were in California, where declines averaged 48 percent. The list includes Sacramento, Stockton, Oakland, San Jose, Orange County, Los Angeles, Seattle, San Francisco, Riverside, and Ventura. These markets also experienced a dramatic decline in the median age of inventory, falling to an average of just 31 days, or 53 percent lower than it was one year ago.
•On an annual basis, February median list prices were up by 5 percent or more in 51 markets, while they were down by more than 5 percent in 11 markets. The number of markets experiencing a year-over-year list price decline in February is significantly below the number of declines observed in January. California markets continue to dominate the list of areas experiencing the largest year-over-year increases in their median list prices, representing nine out of the top ten best performers.