The following is NAR Chief Economist Lawrence Yun’s reaction to today’s report on June’s promising rebound in job growth and what it means for housing and the economy:
“June’s job growth represents a spectacular rebound. It’s also comforting in terms of consistency on a year over year basis – despite some monthly swings – with around 2.5 million net new job additions over the latest 12 months. Further, dynamism is rising with more gross hiring and more people switching to different employers.
This trend is showing up in wages – the best year-over-year rise in many years. The stronger job market means mortgage rates will likely rise a bit from historic lows. The only concern is still sluggish employment rate at under 60% of adults compared to 63% before the recession. All in all, good news for home sales and increased demand for commercial spaces.” – Lawrence Yun, NAR chief economist