There was no shortage of fireworks this week, both in the sky and lighting up the U.S. economic dashboard. The Dow Jones Industrial Average closed early at 1 p.m. Thursday before the Fourth of July, but it was enough time to cross a first-ever threshold of 17,000.
Stocks reacted positively to news of a robust jobs report clocking in at 288,000 jobs added in June, far exceeding expectations. In addition, the overall unemployment rate dropped to 6.1 percent, a mark not reached since 2008. After a sluggish winter for jobs growth, the report shows promise for an economy on the mend.
Another indicator of growing confidence is the "quit rate," or people voluntarily leaving their jobs to seek better opportunities. Instead of being fearful of not being able to land a new job, this measure shows more people are willing to take the risk of leaving job security behind. According to the U.S. Bureau of Labor Statistics, the quit rate climbed to 2 percent in April 2014 in the private-labor sector.
All of this positive economic data could mean mixed messages for the housing market: While interest rates remain lower than where they stood a year ago, it's entirely possible that rates will rise along with the stock market. However, Federal Reserve chief Janet Yellen has made it clear that more housing strength is needed before interest rates will dramatically change. In the meantime, rates continue dwelling at historic lows while the stock market soars to new highs.
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