Mortgage Rates and Federal Job Cuts - Texas - San Antonio Real Estate

Alan Greulich March 4, 2025

Can Government Job Cuts Lead To Lower Mortgage Rates For Spring? (San Antonio, TX)

Could the loss of jobs in the government sector and the withdrawal of funding from the economy significantly increase the unemployment rate and a surge in jobless claims? If this happens, will we see lower mortgage rates this spring?

It’s an intriguing thought, especially considering how this aligns with White House officials’ strategy to boost labor supply, reduce aggregate demand, and potentially drive down the 10-year yield.

The government’s actions impact the livelihoods of many Americans — not just through layoffs of federal workers but also by cutting funding that will result in more jobs being lost.

It feels like a broader game plan is at play here, worth exploring as we navigate these economic changes together.

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National Housing Market Predictions for 2025-2029

Housing Market Outlook: 2024-2029

Economic Growth: Slowing from 2.9% in 2023 to lower levels in 2024, though no recession is expected. Predictions may shift if economic conditions change.

Home Prices: Up 4% YoY in 2024, with steady increases expected through 2029, rising about 17% from 2024 levels.

Home Sales: After historic lows in 2023-2024, existing home sales will gradually recover, while new home sales continue to grow but face land and labor constraints.

Home Rents: Growth has slowed, with single-family rents rising in 2025 while multifamily rents may dip before rebounding later in the year.

For More details: 2025-2029 Five-Year Housing Market Predictions