While the May employment report offered mixed news on the jobs market, the housing market is expected to continue to help drive economic growth, Fannie Mae Chief Economist Doug Duncan said in a statement.
Recent increases in mortgage rates have not negatively impacted consumers’ outlook on the housing market, and Fannie Mae’s June National Housing Survey is expected to reflect a “meaningful improvement” in home price expectations and buying and selling conditions, according to Duncan.
According to the U.S. Bureau of Labor Statistics, the economy added 175,000 jobs in May, the most in three months. But Duncan noted that revisions of a combined 12,000 jobs in March and April brought the average monthly gain over the last three months down to 155,000 jobs, a significantly lower rate of growth than what was observed at the beginning of 2013.
“Overall, the employment report supports our view of continued modest growth amid headwinds from fiscal policy and tailwinds from housing,” Duncan said. Source: Fannie Mae