Employers added 292,000 jobs in December, the Labor Department reported Friday. This was well above the 200,000 expected and follows solid jobs creation in October and November. The end of 2015 marked the fifth straight year in which employment grew by 2 million. While month-over-month wage growth from November to December was stagnant at 0.0 percent, year-over-year wage growth was 2.5 percent. The Unemployment Rate remained at 5 percent, a seven-year low.
The Jobs Report is considered a market mover each month; however, continued news of China's economic struggles was the real game changer last week as global markets fell. When Stocks plunge, Mortgage Backed Securities and other Bonds usually improve. Because home loan rates are directly tied to Bonds, home loan rates can improve in the process.
The good news for homebuyers and homeowners right now is that rates are currently hovering near all-time lows.