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51 June 2025 J O U R N A L June 2025 » earnings, combined with an increase of 0.2% in the Consumer Price Index for All Urban Consumers (CPI-U). Real average weekly earnings decreased 0.1% over the month due to no change in real average hourly earnings, combined with no change in the average workweek. The BLS also reported that total nonfarm payroll employment increased by 177,000 in April, with the nation's unemployment rate was unchanged at 4.2%, as employment continuing to trend upward in healthcare, transportation and warehousing, financial activities, and social assistance, as federal govern- ment employment declined. That unemployment stat may soon shift as the Trump administration's March 13 deadline to cut federal work- forces has passed and job cuts loom in nearly every government department. Government Executive reports that many agencies have already begun send- ing out reduction-in-force (RIF) notices or have outlined employee exit options. Nearly 25,000 probationary employees have lost their jobs to date. The Consumer Financial Protection Bureau (CFPB), for example, issued RIF notices for approximately 1,500 personnel, roughly 88% of its workforce on April 17, while announcing 50% cuts to its inspection operations of financial services companies. Employees were told they would be locked out by 6 p.m. on April 18 and would be separated from federal service by June 16, barring qual- ifications for other available positions. A federal judge on April 18 temporarily paused the RIFs at CFPB. And while federal layoffs may be a small blip on the overall employment radar, these layoffs could potentially impact the housing market moving forward through 2025 and beyond. As more lose their jobs and are forced to move and vacate their homes, foreclosure expectations could ramp up and gain momentum. "Quite a few people in D.C. are sell- ing their homes because they're losing their jobs," said Redfin Premier Real Estate Agent Mary Bazargan of recent D.C. area governmental layoffs. "Many of those people are planning to leave the area because the cost of living is high, and they want a new job that allows them to work remotely and be closer to family. I recently worked with a buyer who bid on a home, offered more money than any other buyer, and waived all contingen- cies. Still, the seller ended up going with an all-cash offer because all of the layoff news made them nervous about accept- ing offers from financed buyers." Q1 FORECLOSURE VOLUME, DELINQUENCIES TREND UPWARD A ccording to the Mortgage Bankers Association's (MBA) National Delinquency Survey, at the end of Q1 2025, the delinquency rate for mortgage loans on residential properties with one to four units rose to a seasonally adjusted rate of 4.04% of all outstanding loans. The delinquency rate increased by 10 basis points from a year ago and by six basis points from Q4 2024. In Q1, the percentage of loans on which foreclosure actions were initiated increased by 5 basis points to 0.20%. "There were mixed results for mort- gage performance in Q1 2025 compared to the end of 2024. Delinquencies on con- ventional loans increased slightly, while mortgage delinquencies on FHA and VA loans declined," said Marina Walsh, CMB, MBA's VP of Industry Analysis. "Foreclosure inventories increased across all three loan types, and particularly for VA loans." MBA's Q1 2025 National Delinquency Survey — U.S. Highlights • For all outstanding loans, the season- ally adjusted mortgage delinquency rate rose in comparison to the previ- ous quarter. The 30-day delinquency rate rose 11 basis points to 2.14%, the 60-day delinquency rate dropped 3 basis points to 0.73%, and the 90-day There were mixed results for mortgage performance in Q1 2025 compared to the end of 2024. Delinquencies on conventional loans increased slightly, while mortgage delinquencies on FHA and VA loans declined." —Marina Walsh, CMB, VP of Industry Analysis, MBA