Unemployment remains stable at 4.2%, with significant job gains concentrated in health, education, leisure, and hospitality sectors. The Federal Reserve's cautious approach to interest rate cuts has kept mortgage rates under 7%. A weak jobs report may expedite rate cuts, potentially stimulating housing demand by making mortgages more affordable. Meanwhile, trade tensions and tariffs initiated by the Trump administration continue to affect consumer confidence and housing market dynamics, adding complexity to the economic landscape.
"The job gains were concentrated in the sectors of health and education (63% of gains), leisure and hospitality (35%) and financial activities (10%)."
"If the labor market continues to cool, the Fed will likely cut the Federal funds rate in September and in most markets, lower mortgage rates will unleash housing demand that has been pent up for the last couple of years."
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