1 August 2014

The recent data shows that last month U.S. economy created fewer new jobs than expected and the unemployment level went up. In the same time, such results can be viewed from the positive perspective, as the Fed may not raise interest rates until the situation changes.

“Everyone is scared, in a way. It’s a decline we’ve been expecting,” said Marcus Xu from M.Y. Capital Management Corp.

Economic instability (unless it’s a big recession) typically means prolonged period of low mortgage interest rates to stimulate recovery. We will watch closely how this development will unfold.