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US labor market improves, could provide housing boost

Posted on Tuesday, July 8, 2014 at 10:27:05 AM

The housing market is contingent upon a number of factors, and without a few key elements it may be tough to see home sales tick up and residential financing rates continue to improve.

For example, without a strong economy and personal wealth, people are less likely to invest in real estate. According to HousingWire, the ongoing recovery hinges on the labor market, and recent hurdles are in part due to a lack of new jobs. If this were to change, it is possible that conditions would start to improve at a more rapid pace.

In fact, recent numbers released by the U.S. Bureau of Labor Statistics indicate that the employment situation is actually getting better. Total nonfarm payroll employment rose by 288,000 in June, while the jobless rate headed in the opposite direction - now at only 6.1 percent nationally. Across the country, there were only 9.5 million unemployed people, down 325,000 on a monthly basis. On a yearly level, there were 2.3 million fewer people looking for work.

The end result could be an improved housing market. As more Americans find jobs, they are more likely to want to spend money on real estate.