Recent jobs data shows that wage growth is cooling down and the job opening quits rate is below pre-COVID-19 levels. This bodes well for those hoping to see a soft landing for the economy, and for those hoping for lower mortgage rates.
The Fed recently said that the labor market showing signs of weakening would force them to act more dovish on rate cuts, and that seeing vigorous job creation wasn’t a big concern.
A positive story in housing this year is that the mortgage spreads are improving, and there has not been a stress market event like last year to push them higher. This is a huge benefit to the economy because if the spreads can get back to normal with lower yields, home buyers could be enjoying a sub-6% mortgage rate market before the end of 2024.
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