LAST WEEK'S ECONOMIC NEWS UPDATE

Unemployment dropped to 4.7% in March, a 4-1/2 year low, as employers boosted payrolls by 211,000 workers, the Labor Department reported April 7. At the same time, wage growth was sluggish, with the average hourly wage up just 0.2% to $16.49, a shade less than the 0.3% increase economists had forecast. Modest wage growth, however, is seen as a positive sign for keeping inflation in check.

First-time jobless claims also fell for a third straight week to 299,000, down 5,000 from the previous week. The total number of Americans receiving benefits dipped to 2.44 million, the lowest level in six years.

Meanwhile, the services sector of the U.S. economy expanded to 60.5 in March from 60.1 in February, according to the Institute for Supply Management index issued April 5. A reading above 50 means that non-manufacturing activity is growing.

Construction spending rose to a seasonally adjusted annual rate of $1.185 trillion in February, an all-time high, the Commerce Department said April 3. The 0.8% gain over January's level was greater than the 0.5% increase Wall Street had expected.

Rates on 30-year mortgages rose to their highest level in 2-1/2 years, Freddie Mac reported April 6.

(Courtesy of Louise Rose, ELB Mortgage Brokers)