Kiplinger is a Washington, D.C. based publisher specializing in business forecasts and personal finance.  The rankings for Kiplinger’s Best Value Cities 2011 was based on cost of living, the vibrance of the economy, and amenities that are available to residents.

One aspect that contributed to making Knoxville one of the Best Value Cities is Knoxville’s economy. With an unemployment rate of 7.7%, the Knoxville economy has shown vibrancy even during these difficult times. With many corporate headquarters based in Knoxville including:  Bush’s Baked Beans, Jewelry TV, and Pilot, there are many employment opportunities available to residents.  TVA, which is the largest utility provider in the United States, is also based here along with the Oak Ridge National Laboratory, which both employ many residents.

The city has also created an environment that has attracted businesses from other parts of the country. Scripps Networks moved their corporate headquarters here back in 2010 from Cincinnati, Ohio.  Green Mountain Coffee also moved here in 2008.  And still, there are other businesses looking to move here, Sierra Nevada Brewing Company has been eying East Tennessee as a potential new brewing location.

Another factor which made Knoxville one of the Best Value Cities is the low cost of living.  The average two bedroom home is $94,900 and a two bedroom apartment can be rented for $618.  Residents also enjoy low utility, energy, and tax rates.

Residents also have many sources of entertainment and activities.  Every spring there is the free concert series called Sundown in the City, which attracts as many as 12,000 residents to each of its five weekly concerts. Knoxville is also home to the International Biscuit Festival, which was ranked the Best Food Festival in the US, by Livability.Com. Downtown also offers many sources of entertainment for residents in Market Square and the Old City.

East Tennessee residents also have their pick of many outdoor activities. With the Tennessee River, residents can go tubing, waterskiing, or take part in redneck yacht clubbing.  And, with the Great Smokey Mountain so close, residents can go hiking, camping, or lazing tubing.

With many employment opportunities, a low cost of living, and many activities for residents, Knoxville is a great city to live.  If you have any questions about moving here or living here, please feel free to contact me, I would love to share my knowledge and love of the area with you.  Shoot me an email, give me a call at 865-696-9002, or leave a comment, I would be more than happy to help.

In June, for the first time since December 2009, the U.S. workforce shrank.

According to the Bureau of Labor Statistics, the economy shed 125,000 jobs last month even as the Unemployment Rate dropped to 9.5 percent. The drop in the Unemployment Rate is being attributed to fewer Americans looking for work.

At first glance, the jobs report looks weak but a deeper look shows something different.

Excluding the 225,000 government Census workers that recently left the workforce, the total number of employed persons actually grew by 83,000 in June. That’s 50,000 more working Americans as compared to May.

And, since the start of the year, the U.S. workforce has grown by 857,000.

Jobs growth is closely tied to economic growth because more working Americans means more disposable income which, in turn, stokes consumer spending. Job growth is better than job loss.

Consumer spending makes up the majority of the U.S. economy so as consumer spending grows, investor mentality tends to shifts toward “return on principal” (i.e. stock markets) from “safety of principal” (i.e. bond markets).

A move like this is often bad for home affordability because falling demand for bonds is tied to higher mortgage rates. In addition, with the growing number of Americans earning a paycheck, demand for homes is likely to increase, thereby helping to push home prices higher.

Overall, therefore, the jobs report should be bad for rate shoppers and home buyers in in Maryville. Except, the markets aren’t reacting that way. For now, mortgage rates are slightly improved since the jobs report’s release.

Perhaps Wall Street is watching the wrong figures, but don’t let that be your loss. If you’re shopping for a mortgage, a home, or both, now may be your best time to make a move; while rates are still low; with home prices down; before traders change their tune.

Because when markets change, it’ll likely happen fast.

On the first Friday of each month, the Bureau of Labor Statistics releases its Non-Farm Payrolls data from the month prior.

The release is more commonly called “the jobs report” — a major factor in mortgage rates and monthly payments.

Especially now.

With the recession officially over and growth returning to the U.S. economy, the recovery’s next frontier is jobs. As job growth increases, home affordability should take a hit.  Here’s why:

1. As the number of working Americans increases, so should total consumer spending
2. As consumer spending increases, so should a return to risk-taking on Wall Street
3. As risk-taking returns to Wall Street, bond markets should start to lose

Mortgage rates, therefore, should rise.

Furthermore, as the jobs market stabilizes and recovers, renters should be more apt to buy their first home, and homeowners should be apt to up-size.  More home buyers in Farragut means more competition for homes and higher home prices typically follow.

Job growth can be trickle-up for housing.

Today, however, the jobs data was not so strong. According to the government, 431,000 jobs were created in May, but of those new jobs, 95.4% represented temporary staffing for the 2010 Census.  The number of private-sector jobs created fell well short of expectations and Wall Street is voting with its dollars right now.  Mortgage bonds are gaining so, therefore, rates are falling.

The May 2010 jobs report may not reflect well on the economy, but home affordability in Tennessee and around the country is improving because of it.

Conforming and FHA mortgage rates in Tennessee have improved over the last 10 days, but that could all change this Friday with the release of February’s Non-Farm Payrolls report.

Non-Farm Payrolls is the official name of the government’s monthly jobs report and, given the fragile state of the U.S. economy, Wall Street will be watching it closely.

Mortgage rates could spike come Friday morning.

Jobs are an important part of the nation’s recovery. Among other concerns, unemployed Americans don’t spend as much money on goods and services, and are more likely to default on a mortgage. This retards economic growth and increases the potential for foreclosures.

When jobs numbers worsen, therefore, it follows that economic projections worsen, too.

Poor employment figures draw money away from the stock markets and into less-risky bond markets, including mortgage-backed bonds.  Mortgage rates improve as a result. Conversely, when jobs numbers improve, stock markets gain and bond markets worsen.

Analysts expect that a net 30,000 jobs were lost in February.

The Bureau of Labor Statistics press release hits at 8:30 A.M. ET, roughly an hour before Friday’s mortgage pricing will be available to consumers. If you’re worried about rates rising on the heels of a strong jobs report, therefore, be sure to get your rate lock in today instead. Once Friday gets here, it may be too late.

There has never been a better time to buy a home in the Knoxville Area than right now. The rates are low, prices are low and their are plenty of homes to choose from on the market. Another reason is the tax credit available not just to first time home buyers but move up buyers that I talked about in an earlier post. Considering all of the above NOW is the time to get out there and start shopping around for a new home.

Check out my 5 Step Program to make your buying experience smooth and painless. It is FREE and will help you. Call me at 865-675-8326 or Rick@TheBigOrangePress.com I would love to help you find a new home.

Also check out

5 Steps To Getting the best deal on a Knoxville Home Part 1

Part 2 Of Getting A Good Deal On A Knoxville Home