Mortgage rates nudged slightly higher this week, but don’t let that scare you—buyers and sellers alike are still very much in the game. Between steady job growth, rising wages, and shifting global dynamics, the market continues to show signs of both resilience and transition. Let’s break it down:
📊 Job Growth Continues—And That’s (Mostly) Good News for Housing
The U.S. economy added 139,000 jobs in May, a bit stronger than expected. Yes, there were some downward revisions to prior months, but the big takeaway? People are working and wages are rising. Average hourly earnings rose 3.9% year-over-year, giving more buyers the income confidence they need to pursue homeownership—even in the face of slightly higher borrowing costs.
🏡 What This Means for Real Estate
While mortgage rates rose a bit this week, demand remains strong, especially in markets where inventory is still tight. Buyers who sat on the sidelines earlier this year are trickling back in—often more motivated now that the Fed seems unlikely to hike rates again in the near term. Sellers who price strategically are still moving properties quickly, especially in desirable neighborhoods or with homes that are turnkey-ready.
If you're thinking of making a move this summer, the current market rewards preparation and realism: buyers should get pre-approved and move quickly when they find “the one,” while sellers should pay close attention to pricing and presentation.
⚙️ Business Activity Softens, But Not Dramatically
The ISM reports showed the services sector dipped just below expansion territory, while manufacturing took a similar dip. These may be signs that the broader economy is cooling just enough to prevent more aggressive rate hikes—another potential win for mortgage shoppers.
🌐 Global Snapshot: Trade Deficit Shrinks, ECB Cuts Rates
Globally, the U.S. trade deficit plummeted from a record $140 billion in March to $62 billion in April, as import activity normalized after a tariff-induced buying spree. Over in Europe, the European Central Bank cut rates for the first time in a while, signaling a shift in international monetary policy that could have ripple effects across global markets.
🧭 The Takeaway for Buyers & Sellers
Yes, rates inched up. But job growth and wage increases tell us that many Americans are well-positioned to buy—and if inflation continues to cool, we could see more rate relief later this year. The real estate market isn’t stalling—it’s adjusting. And that’s exactly when informed buyers and sellers tend to win.
Have questions about how this all affects your plans? Let’s talk—I’m here to help you make sense of the market and create a strategy that works for you.
