Latest Hits: Soft Jobs Report Increases Chance of Lower Mortgage Rates

Hey everyone! Big news in the real estate world! The June jobs report shows a slight increase in the unemployment rate from 4.0% to 4.1%, indicating a cooling labor market. This could lead to a rate cut from the Fed in September, especially if next week's inflation data aligns. The report also revealed 206,000 new jobs in June, slightly above expectations, but revisions to April and May data showed 111,000 fewer jobs than previously reported. Average hourly wages grew by 0.3% month-over-month, matching expectations. With the labor market no longer driving inflation, the Fed is now focused on inflation data to guide their policy. The next CPI report on July 11 will be crucial. If it meets expectations, the Fed might start preparing for rate cuts as early as their July 31st meeting, potentially starting in September. For home buyers and sellers, this could mean lower mortgage rates by the end of the year. However, stay tuned as things can change quickly with each new data release and the upcoming U.S. presidential election. Stay informed and make smart real estate decisions!