The jobs picture improved slightly in July, but its impact on the housing recovery is more murky.
Mortgage bankers shed 1,200 jobs, as their refinance business has dropped dramatically due to higher rates. The unemployment rate for young adults rose to 7.8 percent, with just 74.8 percent of them working, according to the Bureau of Labor Statistics. That is the lowest share in a year.
(Read more: Jobs growth misses high hopes; rate drops to 7.3% )
"Without jobs, fewer young adults will buy, rent, or even move out of their parents' homes, which holds back future household formation and longer-term demand for new construction," noted Jed Kolko, chief economist for Trulia.
On the other hand, large downward revisions in overall jobs in July kept mortgage rates from rising even further. Conforming loan rates are tied to mortgage-backed-securities, or MBS, which tend to correlate with U.S. Treasuries.
Conforming loans are those backed by Fannie Mae, Freddie Mac or other government agencies. Their limit is $417,000 but can be as high as $625,500 in high-cost housing markets.