How important is today’s jobs data?

Old mansion like homes in the Elmwood Village neighborhood of Buffalo, New York | mortgage rate news

Why is today’s jobs report so important?

The jobs reports that are slated to come out today are the final jobs data from 2023. This is consequential because the market needs data to provide direction, this is one of the first data points of 2024, and it may give insight into which way the overall economy is trending.

Economists predict that the U.S. economy added 160k positions in December. If the number comes in above the projection, that means we have a hot jobs market, and potentially a hot economy. If it comes in lower, that could mean that the economy is cooling.

FwdBonds economist Christopher Rupkey stated, “Companies are posting fewer job openings, but they are not laying off workers and that keeps economic growth in the plus column in the new year. The labor market is not too hot and not too cold at the moment. We will leave it up to Fed officials to say whether the labor market is ‘rebalancing’ enough to bring inflation down further.”

The jobs data will likely impact the bonds market, and that may impact the mortgage market.

Homebuyers’ monthly payments at lowest level in a year

According to a recent report from a major real estate listing company, the median U.S. mortgage payment in the U.S. during the four week ending December 31st. This is down almost 14% since October’s all-time high, and the lowest level in nearly a calendar year.

Las Vegas Redfin Premier agent Shay Stein said, “There have been more tours and more offers on my listings since mortgage rates started declining. It’s all about perspective: Two years ago, buyers would have cried about a 6% mortgage rate. Now, they’re happy they’ve dropped down to the mid-6’s.”

Could Buffalo end up as 2024’s hottest market?

Zillow has released its annual housing market predictions for 2024, and the top market on the list was Buffalo, NY.

Zillow’s team of experts ranked top metro areas by expected home value growth, projected changed in owner-occupied households, and job growth compared to new construction.

Buffalo came out on top due to its booming jobs market, the number of new homes under construction, and expectations for steady home value.

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