Low Unemployment Means…

Green Escrow | Real Estate News

The latest Bureau of Labor Statistics report states that the U.S. economy added 211,000 jobs in April with the unemployment rate falling to 4.4 percent – the lowest rate since May 2007 – with the following implications for the houseing market:

  • Job growth among young adults increased by 2.8 percent year over year which is good news for household formation and thus, the housing market.
  • Much of the job growth was in full-time jobs are are drawing more adults back to the workforce
  • Strong employment rates almost assures another interest rate hike by the Federal reserve, most likely in June. Analysts believe the rate hikes will continue to be gradual.

And beyond that, it remains to be seen.

November Job Growth Strong, Interest Rates to Rise?

Green Escrow Services | Work force

The job market growth remains strong with 178,000 jobs added in November, 2016 – higher than expected. Since February 2010, 15.7 million jobs have been added, one of the longest streaks of overall employment growth in the U.S. on record. Moreover, job growth in the residential construction industry remains very strong with a 3.5 percent increase over 2015, many coming in the home improvement remodeling sector.

Unemployment dropped from 4.9 to 4.6 percent with 400,000 Americans leaving the workforce, largely due to baby boomers retiring.

In addition, despite a slight dip in November, wages are up 2.5 percent over 2015.

Given these factors, many analysts expect the Federal Reserve to increase interest rates in December.