ShareWall Street is struggling, but Main Street is managing to hold on so far. Job gains were solid in March, with 228,000 net additions. More Americans also chose to look for jobs, which caused the unemployment rate to tick up to 4.2%. The wage growth of 3.8% is outpacing consumer price inflation at 2.8%. However, keep in mind that the jobs data tends to be a lagging indicator of the economy.
Despite the second consecutive month of reductions in federal government jobs, overall government staffing increased due to local government hiring, primarily in the education sector. Expect further declines in federal jobs in the coming months. Construction jobs rose in the nonresidential sector, while there was a pullback among general contractors in the residential sector.
The future direction of the economy remains uncertain due to tariff wars and potential negotiations. In the meantime, interest rates on FHA and VA loans could soon drop below 6% in a matter of days. Rates on conventional and jumbo loans are also declining as money shifts from stocks to bonds. The current job additions and decreasing rates are likely to lead to more home sales. In states with faster job additions, particularly in the Rocky Mountain time zone and the southern states, home sales could increase significantly. Be prepared.
