Last Week in Review
Labor market data was the main focus last week, led by Friday’s jobs report from the Bureau of Labor Statistics. They reported the economy added 162,000 jobs in August — nearly triple what economists had expected — while the unemployment rate held steady at 4.1%.
However, other labor market reports painted a different picture. ADP estimated private employers added just 38,000 jobs in August, the slowest pace since January. Revelio Labs came in similarly, estimating 36,500 new jobs. Healthcare accounted for a significant share of those gains, reflecting continued demand as the population ages rather than a broad pickup in hiring.
Job openings totaled 7.27 million in July, though the June figure was revised significantly lower. One positive sign: initial unemployment claims remain relatively low, suggesting layoffs are still limited. But continuing claims remain elevated, meaning people who do lose their jobs are taking longer to find new ones.
These labor market reports matter as the Federal Reserve considers its next interest rate decision.
Tensions also escalated with the Iran war this weekend, with the U.S. striking three Iranian oil tankers and the Houthis striking a refinery in Saudi Arabia. Oil prices are moving higher as a result.
Mortgage Rates This Week
Optimal Blue reports the average rate for a 30-year fixed as of last Friday, September 4th, at 6.766%. That’s trending higher than what I shared with you last week.
Please remember: this Optimal Blue index reflects about 35% of mortgage transactions nationwide — it’s not a rate quote. You cannot lock in last week’s rate today, and your credit score, loan-to-value, and other factors will impact what you may qualify for. This is simply meant to give you a sense of how rates are trending. I’m happy to provide you with a current rate quote based on your personal financial scenario for homes located anywhere in Washington state.
Economic Calendar
We’ll be watching the PPI and CPI reports this week — especially CPI, the Consumer Price Index, a key measure of inflation that may influence what the Fed does at next week’s meeting. CPI is expected to rise 0.4% in August, with the year-over-year figure holding at 3.4%.
- Monday: Happy Labor Day
- Tuesday: NFIB Small Business Optimism Index
- Wednesday: 10-Year Treasury Auction
- Thursday: Jobless Claims, Producer Price Index (PPI), Existing Home Sales
- Friday: Consumer Price Index (CPI)
CME FedWatch odds currently show a 60% probability of a 25 basis point increase.
As of around 10:00 a.m. Pacific Time this morning, mortgage-backed securities are flat, while the Dow is down 542 points — largely due to oil prices, higher yields on U.S. Treasuries, anticipation of the Fed raising rates, and continued uncertainty around the Strait of Hormuz.
In the Spotlight
A couple of new guidelines went into effect this past week that you should know about.
Freddie Mac is now allowing manufactured homes that have been moved previously — as long as they get a structural integrity inspection from a licensed professional and meet wind and thermal zone requirements. Just note: loan proceeds can’t cover delivery, setup, or site costs. Read more here.
Fannie Mae is no longer requiring a signed lease to convert a departing residence into a rental property. Qualifying rental income can no longer be established with a signed lease — instead, it must come from a full appraisal report showing market rents, a Single Family Comparable Rent Schedule (Form 1007), or a market analysis using tools like Zillow, Redfin, or MLS, with a minimum of three comparable rental properties from the same market area. Full details here.
Let’s Talk
If you have questions about your specific scenario — whether you’re buying a home, refinancing, considering a retirement mortgage, or just trying to figure out your options — I’d love to hear from you. I’m always happy to help.
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