Texas economy showing signs of slowing?

​​​​​DALLAS – A slight decline in job growth and a cooling housing market may be signs that Texas’ robust economic expansion could be starting to slow, according to a report by the Federal Reserve Bank in Dallas.

"The Texas economy is continuing to grow at a robust pace, although it’s moderating somewhat from what we saw earlier in the year," said Dallas Fed Assistant Economist Christopher Slijk. "Job growth in the third quarter was 2.4 percent, which is down from the previous two quarters but still outpacing the national average."

A tight labor market has emerged as Texas unemployment hit a historical low of 3.7 percent in October.​

Job gains are still climbing, with Houston, Austin, and El Paso all growing at a 3.9 percent annualized rate.

In addition, the housing market may be experiencing some supply and demand issues that are causing it to decelerate.

According to the report, low home inventories could be constraining home sales, while rising mortgage rates—a result of the Federal Reserve’s decision to raise short-term interest rates—are affecting affordability and purchasing power.