Strong employment reports seemed to counter the fear of an impending recession, but included signs of warning to the housing market.
According to data released by the Ministry of Labor on Friday, the US economy added 372,000 strong new jobs in June, showing a significant increase in the leisure and hospitality sector. The unemployment rate remained at 3.6% for the fourth straight month.
“A strong labor market is still positive for the housing market,” Joel Kang of the Mortgage Banking Association said in a statement.
As a mortgage rate Approaching 6 percentIncluding creditors JP Morgan, Mr. Cooper And Texas base First Guarantee Mortgage Hundreds of staff were fired each. Brokers and rental startups such as Compass, Redfin, Side Zamper I also made a cut.
Mortgage rates have fallen Back to 5% In early July, but strong job numbers and another expected federal interest rate hike could continue to raise them.
“As the Federal Reserve is keenly focused on lowering inflation, we do not expect this to change short-term expectations for the next 75 basis point rate hike. [at its July meeting]”Kang said.
Leisure and hospitality businesses such as hotels, restaurants and bars increased their employment by 68,000 last month, while the industry has 1.3 million fewer employees than in February 2020.
Warehouse employment increased by 18,000 in June. On a seasonally adjusted basis, 15,000 jobs have been added, surpassing those employed in the retail sector. According to the report, employment in the construction industry was almost flat.
According to RSM real estate analyst Nick Grandy, low unemployment means there is a shortage of workers to carry out the construction industry.
“The industry is still lacking a significant amount of work,” Grundy said in a statement. “This trend could continue with funding for new infrastructure programs, which will increase government spending in this sector in the second half of this year.”
Wage growth continued in June, but at a slower pace than the previous month. “Especially on important household spending such as food, fuel and housing,” Kang said last year’s average hourly wage was below the pace of inflation and increased by 5.1%.
The percentage of teleworkers dropped from 7.4% to 7.1%, reflecting the percentage of people who returned to the office in May.
The Ministry of Labor also revised the employment increase reported in April from 436,000 to 368,000 and from 390,000 to 384,000 in May, eliminating the 74,000 jobs it had acquired in the two months.