Meanwhile, the five-year adjustable rate mortgage ticked higher to 4.14% versus 4.04% just a week ago and 3.22% the previous year.

“The all-important read on the American labor market showed stronger-than-expected employment and wage growth, which gives the Federal Reserve yet another data point suggesting that the U.S. economy can withstand higher interest rates,” said Aaron Terrazas, senior economist at Zillow. “The upward momentum for rates is likely to continue in the near term.”

The Federal Reserve ended a two-day policy meeting last Thursday with the announcement that interest rates would remain unchanged as expected by the capital markets. However, the CME Group’s Fed Watch Tool shows a 75.8% chance that a fourth and final rate hike will cap off 2018, which could further dampen home remodeling growth.

Related: Housing Market can Adjust to a Gradual Interest Rate Hike

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