• Employers added 235,000 jobs in February and the unemployment rate remained unchanged, according to the February jobs report from the U.S. Bureau of Labor Statistics.
• Construction hiring was particularly strong in February, up 58,000 jobs from January. Other sectors making big gains included manufacturing and health care.
• Average hourly earnings were up 2.8 percent year-over-year in February.

The February jobs report was almost uniformly positive, and bodes well for the housing market in particular as we head into the spring home shopping season. Construction hiring, especially, was up big, promising some relief on the way for home buyers struggling with limited numbers of homes for sale and the rising prices that inevitably follow when demand for homes is high and supply is low. Average hourly earnings posted a strong 2.8 percent annual gain, too, potentially making homes and apartments somewhat more affordable for many. The increasing numbers of jobs may also encourage more younger workers to strike out on their own and form new households. If there were any lingering doubts around the Federal Reserve’s upcoming decision on whether or not to raise key interest rates in coming weeks, it’s fair to say this report probably sealed the deal and rates are very likely to rise soon. Those rising rates will impact mortgage rates, which will have a somewhat negative impact on housing affordability. But the prospect of higher rates to come has likely already been priced into the lending market, and slightly higher rates may actually have the effect of cooling home price appreciation somewhat, especially in pricey and popular coastal markets where jobs have grown the most over the past few years. It’s hard to find any big red flags in this report, and continued progress like this will only mean good things for the housing market and the economy overall.