Strong job market will continue to support housing demand – MBA

“The increase in the unemployment rate largely reflects more workers entering the workforce. The labor force participation rate remains 1% below pre-pandemic levels, but the increase is positive, as labor supply constraints have impacted several segments of the economy.”

There were notable job gains in the professional and business service sectors (+68,000), health care (+48,000), and retail trade (+44,000).

“Coupled with other recent readings, these data indicate an economy that is still growing, but perhaps at an inflection point,” Fratantoni said. “With this in mind, we expect that the Federal Reserve will stay the course with further rate hikes at upcoming meetings.

“The housing market is reeling from the hit to affordability from the spike in mortgage rates and much higher home prices. While these data don’t promise any near-term relief on rates, the strong job market will continue to support housing demand as household incomes continue to grow at a brisk pace.”