The Labor Department reported this morning that the U.S. economy added more jobs than expected in April, on a seasonally adjusted basis.  The increase includes 66,000 temporary Census positions.  The monthly gain was the strongest since March 2006 and gives some hope that labor market conditions are beginning to recover.  Meanwhile, the unemployment rate edged upward as previously discouraged job-seekers re-entered the labor force.  It is likely that the unemployment rate will continue to creep higher even though the economy is adding more jobs as the trend of labor force expansion persists.

Last minute buyers rushed to get their signatures on the dotted line before the federal homebuyer tax credit expired last Friday.  According to the Mortgage Bankers Association, purchase mortgage applications rose for the second straight week to their highest levels since October 2009 in the week ending April 23rd which evidences the surge in activity.  Sales activity will likely slow in the coming months, but by how much will be determined by several factors.
 

Following two dismal months in which inclement weather hampered demand, both new and existing home sales picked up significantly in March.  Pent up demand from buyers who were unable to go home shopping due to winter storms along with the upcoming expiration of the federal homebuyer tax credit boosted existing home sales by 6.8% while new home sales surged 26.9% during the month.

Overall building activity continues an upward trend for the year, helping to buoy homebuilder confidence in April as measured by the National Association of Homebuilders. Increased levels of building activity, some encouraging employment data, and further indications of an economic recovery sent the Housing Market Index, which measures homebuilder confidence, to its highest levels since September.