The lower-than-expected labor market gains for September brought the average monthly job growth for the year down below 200 thousand, which could possibly slow down the housing industry for the rest of 2015, according to the Bureau of Labor Statistics. September saw a gain of just 142 thousand jobs, bringing the average monthly total for the first nine months of 2015 down to 198 thousand. By comparison, job gains averaged 260 thousand a month for the first nine months of 2014.
On September's weak jobs report, Realtor.com Chief Economist Jonathan Smoke said, quote, Job creation is a very important leading indicator of strong demand for housing. The strong employment results for the last two years created an uptick in household formation, which drives demand for home purchases and rentals. If this softening sticks, we could see less robust growth in the year ahead. Close quote. The soft job growth for September also makes it less likely that the Fed will raise rates at the next meeting in late October.
The House of Representatives will vote this week on a bill that will provide a hold harmless grace period for the Consumer Financial Protection Bureau's TILA-RESPA Integrated Disclosure Rule, which was scheduled to go into effect on October 3. On Wednesday, the House Financial Services Committee passed the H.R. 3192 Homebuyers Assistance Act, which could make the grace period official. House Majority Leader Kevin McCarthy released a statement announcing that the House will vote on the Homebuyers Assistance Act this week for those putting forth a good faith effort to comply with TRID.