Job Market Up & Rates Are Down. According to data released by the Labor Department This Week in Real Estate, the U.S. exceeded job growth expectations in March. The unemployment rate edged up slightly to 4.2% from 4.1% yet remains at historically low levels. March’s report highlighted another month of job gains, extending a historic streak for the labor market. The U.S. has now experienced job growth for 51 consecutive months, marking the second-longest expansion on record. Strong employment growth typically signals positive trends for the housing market. Additionally, mortgage rates have reached their lowest levels of the year, driven by a significant drop in the 10-year yield following tariff news. However, while mortgage rates have been stable recently, making modest moves in either direction, tariffs could potentially lead to increased inflation. If inflation rises, it may counteract the benefits of lower rates and continue to adversely affect affordability. Below are key events from the first week of April impacting our business:
U.S. ECONOMY ADDED 228,000 JOBS IN MARCH. The U.S. job market unexpectedly accelerated in March, while the figures for January and February were revised downward substantially. The unemployment rate ticked up slightly to 4.2% in March, from 4.1% the previous month. This month’s jobs report highlights the continued resilience of the labor market despite sticky inflation, a drop in consumer confidence, mass federal government layoffs, and growing economic uncertainty. According to the Employment Situation Summary reported by the Bureau of Labor Statistics (BLS), total nonfarm payroll employment rose by 228,000 in March, following a downwardly revised increase of 117,000 jobs in February. Since January 2021, the U.S. job market has added jobs for 51 consecutive months, making it the third-longest period of employment expansion on record. The estimates for the previous two months were revised down. The monthly change in total nonfarm payroll employment for January was revised down by 14,000 from +125,000 to +111,000, while the change for February was revised down by 34,000 from +151,000 to +117,000. Combined, the revisions were 48,000 lower than previously reported. Read the full story here.
THE 30-YEAR FIXED-RATE MORTGAGE CONTINUES TO TICK DOWN. The 30-year fixed-rate mortgage averaged 6.64% as of April 3, 2025, down slightly from last week when it averaged 6.65%. A year ago at this time, the 30-year FRM averaged 6.82%. “Over the last month, the 30-year fixed-rate has settled in, making only slight moves in either direction. This stability is reassuring, and borrowers have responded with purchase application demand rising to the highest growth rate since late last year,” said Sam Khater, Freddie Mac’s Chief Economist. Read the full story here.
BABY BOOMERS REGAIN TOP SPOT AS LARGEST SHARE OF HOME BUYERS. Baby boomers now make up the largest generational group of home buyers, according to the National Association of Realtors®. NAR’s 2025 Home Buyers and Sellers Generational Trends report, which examines the similarities and differences among recent home buyers and sellers across generations, found that the combined share of younger boomers (ages 60 – 69) and older boomers (ages 70 – 78) rose to 42% of all home buyers in the past year. Millennials dropped to 29% of all buyers – down notably from 38% a year ago. Generation X buyers (ages 45 – 59) held steady at 24%. The report revealed that 24% of recent home buyers were purchasing for the first time, a significant drop from 32% last year. First-time buying was most common among younger millennials (71%), while older millennials are now more likely to be repeat buyers. The overwhelming majority of buyers – 88% – said they would use their real estate agent again or recommend them to others. This sentiment was even stronger among Generation X buyers (91%) and those in the Silent Generation (93%), underscoring the enduring value of professional guidance across generations. On the selling side, baby boomers again dominated, accounting for 53% of all sellers. Across all generations, sellers stayed in their homes for a median of 10 years. Younger millennials remained more mobile, typically selling after five years, while older boomers sold after 16 years. Read the full story here.
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