A deteriorating labor market could have a silver lining for the real estate industry as mortgage rates continue to decline and the Federal Reserve may cut rates later this month.
A key measure of the labor market dropped to its lowest level since the Great Recession, indicating a worsening labor market that could keep interest rates low.
The construction quit rate, which measures the number of construction workers leaving their jobs, reached its lowest point since August 2009, shortly after the recession ended.
This data was released by the U.S. Bureau of Labor Statistics and showed a construction quit rate of 0.9%, as reported by the American Builders and Contractors.
Anirban Basu, chief economist of the American Builders and Contractors, noted the concerning trend in labor demand and job security based on the data.
Despite the decline in the construction quit rate, the number of open construction jobs increased in July compared to the previous month.
These findings were part of the monthly Job Openings and Labor Turnover Summary (JOLTS) report from the BLS, which also included other indicators for the real estate industry.
Overall, the weakening labor market could continue to push mortgage rates lower, benefiting the real estate market.
Mortgage rates have been on a downward trend since mid-August, following remarks by Federal Reserve Chair Jerome Powell about the economy’s risks.
Rates hit their lowest point of the year in the week ending Sept.