Logan Mohtashami, a lead analyst with deep insights into job markets, discusses the implications of the latest jobs report for 2025. He dives into key indicators like employment trends and unemployment forecasts, linking them to the broader economic landscape and mortgage rates. The conversation also tackles how demographic shifts impact labor force growth and housing affordability. Mohtashami further analyzes the effects of federal policies on home purchasing and highlights the contrast in housing dynamics across popular states.
The labor market is showing signs of caution with job openings declining and the Fed anticipating an unemployment rate of 4.3%.
The housing market's potential growth depends on the stability of mortgage rates, which could enhance home sales if they decline.
Deep dives
Labor Market Trends and Forecasts
The discussion emphasizes the current state of the labor market, highlighting that recent job reports showed a slight miss against estimates with revisions indicating negativity. Government job growth is noted, though there are concerns about potential layoffs in the near future. As the unemployment rate experiences a rise, the Fed is highlighted as having set an unemployment target at 4.3%, anticipating job losses if conditions do not improve. This context suggests an overall cautious approach towards labor growth expectations for the upcoming months.
Fed's Key Economic Indicators
Four critical indicators are identified as essential for the Fed's assessment of the labor market: job openings, quits, hires, and wage growth. Job openings data has started to show a decline, which is typically seen as a precursor to softening labor conditions. Wage growth is also mentioned as remaining firm at 4%, suggesting that while economic growth is slowing, there remains some upward pressure on wages. The importance of these indicators lies in their potential influence on future rate cuts by the Fed, which would also impact housing and mortgage rates.
Housing Market Dynamics and Future Outlook
The conversation shifts to the housing market, indicating that lower mortgage rates could facilitate increased home sales. The analysis suggests that the key to a thriving housing market may lie in the duration of interest rates rather than just their absolute levels. There is mention of the sustained housing sales despite fluctuating mortgage rates, driven largely by dual household incomes. The dialogue indicates that if mortgage rates can stabilize or decrease, there is potential for a more robust spring home-buying season.
On today’s episode, Editor in Chief Sarah Wheeler talks with Lead Analyst Logan Mohtashami about the jobs report and where the labor market is heading for the rest of the year.
The HousingWire Daily podcast brings the full picture of the most compelling stories in the housing market reported across HousingWire. Each morning, listen to editor in chief Sarah Wheeler talk to leading industry voices and get a deeper look behind the scenes of the top mortgage and real estate stories. Hosted and produced by the HousingWire Content Studio.