The Labor Department reported earlier that hiring slowed to 114,000 jobs last month, missing expectations. The unemployment rate rose to 4.3%.
What does this mean for real estate and the broader economy?
This is the strongest signal so far that the Fed may have missed the window for its coveted “soft landing,” and we may have already started the slow roll into a recession.
For real estate, it means the Fed will almost certainly approve a rate cut for September. While the initial cut will likely not create a sea change in interest or cap rates, it will signal the beginning of a regression back to the long term averages. For borrowers that are currently struggling or underwater, it will provide a bit of much-needed optimism and may help push banks back to the negotiating table.
As they say, it’s not about timing the market, it’s about time in the market, and it’s no different for real estate!
Reach out to connect on the recent jobs numbers or how you can get involved in our upcoming opportunities here.
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