Chief Economists Weigh In on the Labor Market’s Impact on Housing

Earlier this month, the US Bureau of Labor Statistics shared their Employment Situation Summary for January. Reflecting a minimal change from the previous month, the Bureau stated that total nonfarm payroll employment grew by 151,000 while the unemployment rate dipped to 4.9%. This is the first time since 2008 that the unemployment rate fell below 5%. Compared to the same time last year, the unemployment rate declined by 0.8%.

Although the nation’s economy continues to grow at a gradual pace, Fannie Mae’s Chief Economist, Doug Duncan, stated that the latest statistics pointed to a healthy labor market. Nevertheless, he said that the report offered “little clue about near-term increases in mortgage rates during 2016, which is a positive for a housing market challenged by affordability constraints.”

Curt Long, Chief Economist for the National Association of Federal Credit Unions, and Nela Richardson, Redfin’s Chief Economist, also weighed in on the latest report giving their take on inflation and home affordability in the cities where jobs are being created. Read what they had to say at http://bit.ly/248EZnP.

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