US Labor Department reports that job openings went down by 2.7% in October, leading to a 5.38 million reading. The percentage figure is in comparison to September's results that lead to a 5.5 million job reading and the all time high results of July's reading which is 5.67 million. The October reading is actually the third highest since 2009 when the recession ended. Analysts report that the gap between the job skills applicants bring in and the job skills employers seeks for do affect the entire hiring process. However, the fewer job openings can also mean that the said gap is already closing.
According to reports, prospective buyers of homes also view the improving job markets as an encouragement in their decisions to purchase a home. Fed also considers job openings as a factor in its decision making on the country's monetary policy. Furthermore, all attention is focused on fed's committee meeting next week, as it is expected that members would raise the federal funds rate. If this happens, mortgage rates shall rise as well.
As for the retail sales, the figures rose to 0.20% in November, from a 0.10% growth reading in October. Excluding the automotive sector, retail sales rose by 0.40% which is deemed consistent with the normal holiday sales increase.
Jobless Claims and Mortgage Rates
As per Freddie Mac, mortgage rates experienced rise across the board this past week. The average rate for a 30 year fixed rate mortgage rose to 3.95% which is a two basis point increase. For the average rate for a 15 year fixed rate mortgage, there was a three basis point rise that leads to a 3.19% figure. The average rate for a 5/1 adjustable rate mortgage on the other hand, has a four basis points rise leading to a 3.03% figure.
For the jobless claims, the reading rose to 282,000. This exceeds the 270,000 expectations and last week's 269,000 reading.
