Last week brought a full slate of jobs data, and the overall picture was more encouraging than expected. The Bureau of Labor Statistics reported that total nonfarm payroll employment edged up by 115,000 in April — above forecasts of around 60,000 — with job gains in health care, transportation and warehousing, and retail trade. Federal government employment continued to decline. The unemployment rate held steady at 4.3%.
ADP’s private payroll report also topped expectations, with private employers adding 109,000 jobs in April. Revelio Labs reported approximately 66,000 job gains — still a modest pace of hiring, but the strongest reading since last June. Together, these reports suggest the labor market may be stabilizing after several slower months.
The broader picture was more mixed. Job openings slipped to 6.87 million in March, continuing a longer-term decline from the peak levels seen in 2022. New unemployment claims remain relatively contained around 200,000, but continuing claims stayed elevated at 1.77 million — meaning it’s taking longer for displaced workers to find new positions. Layoff announcements also moved higher in April, with more than 83,000 cuts reported.
Despite the mixed signals in the labor market, housing continues to show resilience. New home sales beat expectations in both February and March, and Cotality now projects home prices to rise approximately 5.1% over the next year — meaningful for anyone on the fence about buying.
Mortgage rates: Optimal Blue Index: Mortgage rates, as of last Friday, May 8, 2026 are essentially the same as what last week’s report. Last week’s rates are old news – I share the Optimal Blue Index to show where mortgage rates are trending. I’m happy to provide you with a mortgage rate quote based on your personal scenario.
Economic Calendar: Week of May 11
Here’s what’s on tap this week:
- Monday: Existing Home Sales
- Tuesday: NFIB Small Business Optimism Index, ADP Employment, CPI (Consumer Price Index) — the big one to watch
- Wednesday: PPI (Producer Price Index), 30-Year Bond Auction
- Thursday: Jobless Claims, Retail Sales
- Friday: Empire State Manufacturing Index
Next FOMC rate decision: June 17, 2026
Tuesday’s CPI report will be the most closely watched release of the week. With geopolitical tensions and inflation concerns in focus, this data will carry extra weight for mortgage rates.
Where are mortgage-backed securities this morning?
As of approximately 9:10 a.m. Pacific, mortgage-backed securities (MBS) are down slightly. There’s no peace deal in Iran, and with CPI releasing tomorrow, markets are pricing in the possibility that inflation prints higher — which is putting upward pressure on rates. Mortgage rates are in a position to move higher as the week unfolds.
In the Spotlight: Updated Homebuyers Guide
This week I want to highlight something I’m really excited about: my completely updated Homebuyers Guide. If you or someone you know is thinking about buying a home — especially for the first time — this is a resource I put together just for you. It walks through the entire process in plain language so you feel informed and confident every step of the way.
Ready to talk through your mortgage options? I’m here to help — no pressure, no obligation. Serving Homebuyers and Homeowners in Washington State
About Rhonda Porter
Please leave a reply