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Home buyers are the winners in the poor jobs report

Published: Friday, Sept. 7 2012 2:31 p.m. MDT

FILE-In this Tuesday, Aug. 21, 2012, a home with a room for rent is seen in Palo Alto, Calif., Tuesday, Aug. 21, 2012. Average U.S. rates on fixed mortgages have risen for a fourth straight week, Thursday, Aug. 23, 2012, remaining slightly above record lows. Cheap mortgages have helped fuel a modest housing recovery this year. (AP Photo/Paul Sakuma)

Paul Sakuma, AP

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For most, a poor jobless report is a bad thing, including President Obama. But, homebuyers can look on the bright side as mortgages rates drop.

U.S. employers only added 96,000 jobs last month, according to Friday’s report from the Labor Department. The unemployment rate dropped to 8.1 percent, but only because many of the unemployed have stopped looking for work.

“We still see some areas where we need more improvement,” U.S. Secretary of Labor Hilda Solis told Bloomberg. “That’s why we need to have cooperation with the Congress. They’ve got a proposal up there, the American Jobs Act, that would help create a million jobs.”

But, the jobless report isn’t bad for everyone.

Despite the jobs report, yields on Frannie Mae and Freddie Mac mortgage securities fell to their lowest point in five years, according to Bloomberg. The drop in yields has staved off the effects of the European debt crisis on mortgage rates, lowering them from 3.66 percent to 3.55 percent.

EMAIL: jferguson@desnews.com

TWITTER: @joeyferguson

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