Although the real estate market continues to build momentum, economic woes could hold back homebuying activity in the near future.
The unemployment rate edged higher in July to 8.3 percent from 8.2 percent the previous month, according to a report from the Department of Labor. This occurred even though payrolls grew by an estimated 163,000 positions.
"It was not dramatic but the payroll jobs gain actually improved in July," analysts from Econoday said regarding the report. "However, the unemployment rate headed the wrong way."
There are currently close to 12.8 million unemployed Americans across the country, which could have a profound impact on the financial safety and soundness they feel toward making major investments.
Those who have the employment stability necessary to buy homes may be able to capitalize on mortgage rates hovering near all-time lows for affordable options. Specifically, during the week ending August 2, a 30-year fixed-rate mortgage averaged 3.55 percent, while the average rate for a 15-year FRM was 2.83 percent, according to a report from Freddie Mac.
Both rates have remained below 4 percent for all but one week so far this year.