This is a YouTube video titled "Jobs Report for January hurt Mortgage Rates! 📈 #homeloans #mortgage #jobs" containing a detailed explanation about the January jobs report and its impact on mortgage rates. The speaker analyzes the discrepancy between reported job creation numbers and underlying economic weakness, discussing factors like part-time employment, labor force participation, and seasonal adjustments. The content is a monologue focused on economic and financial insights related to the housing market.
Why did today's jobs report hurt mortgage rates? So we know when jobs reports are hot, that means people have more money to spend. That could push prices and inflation up. And inflation's the enemy of mortgage rates. So the January report came out, we were expecting 180,000 jobs created. It came in super high at 353,000 jobs created. Mortgage rates pulled back higher, about an eighth or quarter percent today. However, there's a lot more to look at when we unpack it. So we lost 68,000 full time employees and replaced it with 96,000 part time employees. That's not an even exchange. It shows that the workforce is slowing down, even if there's more bodies. And 175,000 people left the labor force, meaning they probably retired. But those don't show up on the report. They kind of get the SK around the report. And then the huge swing was the seasonal adjustment part of it, which is where they take the raw numbers and then adjust it based off of the season of the year to make it more accurate. So if we strip out the seasonal adjustment, there was actually 2.6 million jobs lost just in January. That's a far cry from 353,000 jobs created. But this is the huge, misleading part of this. There's actually big weakness in the economy. I think it'll take a little time to sift through and mortgage rates will continue to recover.
