Strong October job gains Bolster Case for more Fed rate Hikes

U.S. Employers added 165,000 jobs in October, pushing the unemployment rate down to 4.1% and more than doubling initial forecasts. The Bureau of Labor Statistics report shows that nonfarm payroll growth rebounded sharply from a disappointing September, increasing the likelihood that the Federal Reserve will continue raising interest rates to combat inflation.

Professional and business services led the hiring surge with 70,000 new jobs, followed by health care and transportation. The data also included significant upward revisions for August and September, adding 84,000 jobs to those months combined. These figures have increased the probability of a December rate hike to roughly 77%, according to CME FedWatch.

For homebuyers, the dynamic labor market offers support, though nominal wage growth of 3.1% in October trailed the 3.7% inflation rate. While the ongoing war in Iran has kept mortgage rates above 7%, recent midterm election results are unlikely to alter the housing market significantly in the short run as buyers await improved purchasing power.

Read the full story at realtor.com.