A low unemployment rate is good for the housing market because most people don't buy homes if they're unemployed-or worry they're about to be laid off. However, it also means the U.S. Federal Reserve may hold off cutting interest rates for a little longer, keeping mortgage rates higher.
Mortgage rates averaged 6.82% in the week ending April 4, down from the fall but still higher than desired. With delays in Fed rate cuts, rates remaining elevated could pose challenges for homebuyers.
Some had been hoping that the Federal Reserve would cut interest rates at its June meeting. However, with today's strong jobs report, it is all but certain that the first rate cut won't be before July. As a result, mortgage rates are likely going to stay elevated for longer.
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