Three major jobs reports were released last week and all showed unexpected strength - all of which is good for the housing market.
Friday's Unemployment Report stunned economists by dropping from 9.4% to 9.0%. The Unemployment Rate has now dropped from 9.8% to 9.0% in just two months. But many question the drop due to how the data is collected via phone surveys, so lets focus on two other reports that hit last week which are much more scientific.
The ADP Private Payroll report showed much stronger than expected growth. They reported that private corporations hired 187,000 people last month. Economists had expected a gain of only 151,000. The Challenger Job Cuts report measures downsizing. This report showed that the number of layoffs companies have announced plunged 34% in December to its lowest level in 13 years.
As the employment picture continues to brighten, it will add fuel to the very strong levels of Existing Home Sales that we have seen over the past two months.