This week we cover the latest jobs data, housing price forecasts, the Optimal Blue rate index, this week’s economic calendar, a morning MBS update, and a spotlight on price reductions versus seller-paid rate buydowns — including a real example that may surprise you.
Last Week in Review
The Bureau of Labor Statistics reported that the economy added 172,000 jobs in May — roughly double what economists had expected. ADP and Revelio Labs both estimated job growth of around 120,000, suggesting a labor market that remains resilient after several months of slower growth.
Job openings rose to 7.6 million in April, well above expectations, though still below the highs reached in 2022. Continuing claims remain elevated, suggesting some job seekers are taking longer to find new opportunities. Challenger, Gray & Christmas reported a modest uptick in announced layoffs, with AI-related restructuring cited as the leading reason for the third consecutive month.
On the housing front, Cotality now forecasts home prices will rise approximately 5.3% over the next year — a meaningful reminder of homeownership’s long-term wealth-building potential. A $500,000 home appreciating at 5% gains roughly $25,000 in value over a year. The ongoing conflict in Iran continues to influence markets, including oil prices and mortgage rates.
Optimal Blue Rate Index — Week of June 8, 2026
According to the Optimal Blue index, the average rate for a 30-year fixed mortgage as of Friday, June 5, 2026 was 6.512%.
The Optimal Blue index reflects data from approximately 35% of mortgage transactions (lenders who use their platform) and is not a rate quote. Your individual rate will vary based on credit scores, loan-to-value ratio, loan type, and other factors. This index is intended to show directional rate trends only.
Economic calendar — Week of June 8
- Tuesday: ADP Employment, Existing Home Sales
- Wednesday: Consumer Price Index (CPI) — measures inflation at the consumer level and is closely watched by the Fed
- Thursday: Jobless Claims, Producer Price Index (PPI) — measures inflation at the producer level and can be an early signal of where consumer prices are headed
- Friday: Consumer Sentiment
Both CPI and PPI can move mortgage rates, so we’ll be watching those closely. The next FOMC rate decision is June 17, 2026, with current odds at 98% in favor of no change to the Fed Funds Rate. That said, developments in Iran and their impact on oil prices may overshadow the scheduled data this week.
Morning MBS Update
As of approximately 11:00 a.m. Pacific time, mortgage-backed securities (MBS) are improved slightly, supported by optimism around a potential peace agreement with Iran. Rate conditions can change throughout the day — contact me for current pricing.
In the Spotlight: Price Reduction vs. Seller-Paid RateB
In today’s market, sellers are increasingly offering concessions to attract buyers. But not all concessions are created equal — and the difference can add up to thousands of dollars a year.
Here’s a real example based on a $700,000 home with 20% down:
- A $20,000 price reduction saves the buyer approximately $101/month
- A $20,000 seller-paid permanent rate buydown saves the buyer approximately $271/month
That’s a difference of $170 every single month — or more than $2,000 per year — from the same $20,000 in seller concessions.
If you’re a buyer negotiating concessions, it’s worth asking your mortgage advisor how a buydown compares to a price reduction for your specific scenario. And if you’re a seller, a buydown may be more attractive to buyers than simply dropping the price.
Read the full breakdown: Rate Buydown vs. Price Reduction
Have questions about buying, refinancing, or understanding your options? Reach out — I’m always happy to help.
About Rhonda Porter
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