The US continued to add jobs in April—great news for the economy overall as well as the housing industry specifically. The Bureau of Labor Statistics reported payroll employment expanded by 223,000 in April.

After a stagnant March, when only 85,000 jobs were added over the month, experts were worried that job growth had slowed. However, 266,000 jobs were also added in February 2015, suggesting that March may just have been a small blip on the job growth radar.

The unemployment rate fell from 5.5% in March down to 5.4% in April. In total, about 26,000 unemployed Americans found work in April.

The Federal Reserve will still need to see more evidence of an economic recovery before they move forward with raising interest rates—something they have expressed interest in doing sometime in Summer of 2015. Once the Fed raises interest rates, mortgage rates will have to follow suit.

For homebuyers, having low interest rates will generally make more people eligible to purchase a home. However, a full economic recovery will do so much more to in terms of providing financial wiggle room to Americans. Yes, homebuyers may pay higher interest rates in a strong economy, but their proportional inflow to outflow ratio of money will be far more favorable when they are being paid well and consistently. Job growth and low unemployment numbers are always good news for housing. With that being said, for anyone who can afford to buy a home and also has financial security, it will be hard to ever find interest rates so low in the future.

 

Source: http://eyeonhousing.org/2015/05/the-employment-situation-in-april-worse-in-march-better-in-april/