What’s Moving the Market This April?
Published | Posted by Kimo Toguchi
Weekly Market Update: April 7, 2025
Rates Ease, Mixed Employment Data, and Baby Boomers Dominate Housing Demand
Mortgage rates trended lower last week, influenced by ongoing global trade tensions and tariff news. As the market reacts to inflation expectations and employment data, the housing sector continues to show resilience—fueled in part by strong construction activity and steady demand from Baby Boomer buyers.
Construction Spending Beats Expectations
February’s construction spending rose 0.7% month-over-month, more than double the expected 0.3% increase. Residential construction saw an even stronger boost, up 1.3% over January’s revised estimate of $917.1 billion. These numbers reflect continued strength in new home development and infrastructure spending, despite rising material costs.
Labor Market Offers Mixed Signals
Job market data painted a mixed picture last week. Job openings for February came in slightly below forecasts at 7.57 million, missing the expected 7.69 million. However, private-sector hiring beat expectations, with ADP reporting 155,000 new jobs in March.
The broader employment situation showed robust gains:
- Nonfarm payrolls: +228,000
- Private payrolls: +209,000
- Government jobs: +19,000
- Manufacturing jobs: +1,000
Yet, the unemployment rate rose to 4.2%, and annual wage growth slowed to 3.8% from 4%. The labor force participation rate inched up to 62.5%, while the average workweek held steady at 34.2 hours.
Mortgage Applications Slide Slightly
During the week ending March 28, mortgage application submissions slipped by 1.6%. Refinances dropped 6% week-over-week but remained 57% higher than a year ago. Purchase applications increased 2%, reflecting steady buyer activity in a competitive spring market.
Jobless Claims Mixed
Initial jobless claims dropped by 6,000 to 219,000 for the week ending March 29, suggesting strength in new hiring. However, continuing claims rose to 1.9 million—a 56,000 increase—indicating that some unemployed workers are staying on benefits longer.
Notable Trends & Insights
- Baby Boomers are flexing their home equity, fueling housing market demand across the country.
- Tariffs are pushing home prices higher, as material costs climb.
- Homebuilders received a break, with a temporary pass on certain tariffs—easing some construction cost pressures.
Economic Calendar Outlook
Week of April 7, 2025
Date | Time | Event/Report/Statistic | For | Prior |
|---|---|---|---|---|
4/9 | 7:00 AM | Mortgage Application Submissions | 4/4 | -1.6% |
4/10 | 8:30 AM | Continuing Jobless Claims | 3/29 | 1,903,000 |
4/10 | 8:30 AM | Initial Jobless Claims | 4/5 | 219,000 |
4/10 | 8:30 AM | Consumer Price Index | March | +0.2% |
As inflation data and labor market trends unfold this week, expect potential rate volatility and shifts in market sentiment.
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