Settling at 4.3 percent, May set the lowest unemployment record in 16 years, thanks to the 138,000 new jobs added to the economy last month. Generally, unemployment fell by 0.5 point since January and the unemployed count declined to 774,000, approximately.
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Hourly wage also rose by 0.2 percent month over month and is set to outpace inflation with a growth average of 2.5 percent throughout the year.
Still, despite the rise, this did not meet the expectations of many experts who predicted a stronger job gain – 185,000 to be exact. Why?
Friday morning’s report suggests a slowing job growth, per the AP. Relatively, the number of unemployed Americans remained unchanged compared to the previous month. Comparably, a total of 174,000 new jobs were added the month prior. In the past three months, the average jobs gain was only at 121,000 while the 12-month average is at 181,000.
How does this affect housing?
Job growth basically is a good signal for rate adjustment to keep the market stable. So with the upcoming Fed meeting, it is expected that the current rates hovering at the 4 percent level won’t hold for long. Fed rates serve as benchmarks used across the board for all interest rate types.
In the past weeks, average 30-year FRM rate continued to decrease, but the June 13-14 meeting can break that trend. Maybe even before as anticipation builds up. If you are purchasing or refinancing, you might want to lock now before the adjustment takes effect.
