[Daniel Gross](http://www.danielgross.net/) wrote an excellent article on potential job loss caused by the cooling of the real estate market called [As the McMansions Go, So Goes Job Growth [NYT].](http://www.nytimes.com/2005/11/20/business/yourmoney/20view.html) The decline in housing starts and building permits are perhaps an indication that the housing market is cooling and with that, the jobs they have provided may be affected.

Source: NYT

Since the last recession in 2001, the real estate industry has provided 36% of all private-sector payroll job growth or 836,000 jobs. Real estate provides 9.7% of total domestic employment. There has been an unprecedented surge in membership to the National Association of Realtors over the past year as people [try to make their fortunes as brokers in the housing boom [Matrix].](http://matrix.millersamuelv2.wpenginepowered.com/?p=103)

If we actually lose a few hundred thousand real estate related jobs and the Fed drops its concern about inflation with a weakening economy, it may be plausible that mortgage rates could actually trend downward as a result.