The much-awaited unemployment report for July was released today, and it’s neither a good-news nor bad-news set of numbers, just something in between. The Bureau of Labor Statistics reported that the unemployment rate did in fact drop but not by very much,Real Estate Investing with the rate falling 0.10 percent from 7.5 to 7.4 percent.

There wasn’t much cheer on Wall Street either as stocks briefly fell a bit but not by much. The markets were in fact anticipating a relatively robust number but that simply didn’t occur.

At issue is the Federal Reserve’s Quantitative Easing, Part III. The Fed is buying bonds and mortgage-backed securities to the tune of $85 billion each and every month. This keeps bond prices high and interest rates low. The Fed has stated that QE III will cease once the unemployment rate hits 6.50 percent. We’re getting closer to that number, but oh so slowly.

Inside the report were a few more numbers about job creation. The markets had expected anywhere from 184,000 to 200,000 new jobs but the number released Friday reported a modest 162,000. Hardly a number to suggest a robust economy.

Further, of those 162,000 jobs 47,000 of those were in the retail trade industry and 38,000 in the hospitality industry. That’s more than half of the total number in low paying sectors. In addition to the July report, May and June job creation numbers were revised lower.

What does this mean for the real estate investor? It means that the cost of funds will be kept low, as interest rates should continue to be in their relative low levels, extending this trend. Low rates keeps the mortgage payments low and as the demand for rental housing increases and rental rates on the move, that means more profit in the pockets of landlords each and every month.