Markets, though, see only a 35% chance that the central bank will lower rates, according to the CME FedWatch Tool, largely unchanged from expectations prior to that jobs report.
Robust employment outlook could boost housing market
While the new labor market statistics leave the mortgage industry none the wiser about a potential December cut, World Home Loans president and chief executive officer Brian Cooke told Mortgage Professional America the report was a positive one for the industry.
That’s because it indicated a resilient employment outlook even with the economy and housing market facing plenty of challenges.
“It shows the labor market is still solid,” Cooke said. “If that strength continues, buyers stay confident and credit stays accessible. Job stability supports housing demand even with higher rates.”
Asked how a period of continued job growth might impact borrower behavior in the near term, even with rates elevated, he suggested confidence will only strengthen if the labor market improves, with a potential positive knock-on effect for the housing outlook.
