Is the economy too strong for its own good? Let’s unpack.
The U.S. economy is like that overachiever in the office—impressive, tireless, and kind of messing things up for everyone else.
This week’s data dropped, and here’s what it’s saying loud and clear: The labor market is still going strong, and because of that, mortgage rates nudged a bit higher. Why? Because strong job numbers suggest the Fed won’t be cutting interest rates anytime soon.
Let’s break it down:
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147,000 jobs were added in June—blowing past expectations of 110,000.
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The unemployment rate dropped to 4.1%, the lowest since February.
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Wage growth slowed slightly (now at 3.7% annually), but is still healthy.
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Job openings? Still sky-high at 7.6 million, a sign that companies are still scrambling for talent and might be forced to pay more to compete.
All this adds fuel to inflation concerns, and guess what that does? Keeps mortgage rates elevated.
Also in the mix:
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The ISM Services Index ticked up to 50.8 (signaling expansion).
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Manufacturing crept closer to recovery too (up to 49.0).
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Translation: The economy may not be roaring—but it's definitely not ready to lie down.
What it means for buyers and sellers:
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Buyers: Rates are still volatile. If you're waiting for the perfect drop... don't hold your breath.
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Sellers: A strong economy keeps demand steady, especially in markets with tight inventory.
Want to talk strategy? DM me—I’m here to help you navigate the market smarter.
