The following is NAR Chief Economist Lawrence Yun’s reaction to this morning’s U.S. Bureau of Labor Statistics (BLS) report on the employment situation in September:
“Job growth in September was positive yet slower compared to recent months, while the unemployment rate is low at 3.7% and wages are slowly pushing up. However, more jobs and higher wages are not the only key factors for home buying. The tightening labor market, along with some pick up in wages and prices, have forced the Federal Reserve to raise interest rates. Another rate hike after this year’s election is expected and higher mortgage rates in turn will hold back home sales in high-priced markets. Lower-priced markets will be supported by job growth,” said NAR Chief Economist Lawrence Yun.