Unemployment up more than expected in June

Those green shoots just can't catch a break:

Employers cut a larger-than-expected 467,000 jobs in June and the unemployment rate climbed to a 26-year high of 9.5 percent. Workers also saw weekly wages fall, suggesting Americans will have little appetite to spend and the economy's road to recovery will be bumpy.

The Labor Department report, released Thursday, showed that even as the recession flashes signs of easing, companies likely will want to keep a lid on costs and be wary of hiring until they feel certain the economy is on solid ground.

June's payroll reductions were deeper than the 363,000 that economists expected and average weekly earnings dropped to the lowest level in nearly a year.

What does this have to do with real estate? Well, bad economic news should have the effect of pressuring bond rates, and by default mortgage rates, lower. HighRiseSF will, of course, have details on rates in the coming days and whether this will, in fact, impact rates. If so, it might help to bring mortgage applications back up, and with it, sales.

SOURCE: CNBC