September 1, 2026 – Labor Day Weekend

Economic Commentary

This upcoming Labor Day weekend will have a special meaning with regard to the American labor force. Always held on the first Monday in September, this particular Labor Day is on the very last possible day – September 7th.  Why is that important?  Typically, the August jobs report is released after Labor Day.  But this year, Labor Day weekend will feature both the August jobs report on Friday and Labor Day on Monday.  Thus, Labor Day weekend will really have an extra focus on the labor market.  Considering the weak employment report released for July, we will be hoping for a last-minute surge as the summer comes to a close.

Of course, Labor Day weekend is also the unofficial end of summer, even though fall does not start for a few weeks. Kids are back in school and that means that summer vacations are over. Traditionally this weekend represents the start of the fall real estate season as well. The fall real estate season is usually not as strong as the spring market, however in our present economy the direction of interest rates could have as much influence on the real estate market as the calendar. We had an early real estate spring this year because rates eased, but late spring and summer were a bit quieter as mortgage rates reacted to higher energy prices caused by the conflict in the Middle East.

The economy has certainly slowed a bit as the year progressed. Last week the estimate of the second quarter’s economic growth was not revised from the original estimate. The 1.5% growth rate by itself is indicative of an economy muddling along, which is not surprising considering the tepid employment sector. In any other time, a slow economy would have brought interest rates down from today’s levels, but elevated energy prices have kept the markets on edge. Theoretically, a slower economy should reduce energy consumption which would counterbalance somewhat the influence of the Middle East conflict.  But markets don’t always react in concert with theory. Regardless of this conundrum, we hope everyone had a great summer and happy Labor Day!

Weekly Interest Rate Overview

The Markets. Mortgage rates were mostly unchanged this past week.  According to the Freddie Mac weekly survey, 30-year fixed rates rose one tick to 6.66% last week from 6.65% the previous week. In addition, 15-year rates increased to 5.98%. A year ago, 30-year fixed rates averaged 6.56%, 0.10% lower than today. Attributed to Freddie Mac: The economy remains resilient, demonstrated by steady consumer spending and rising household incomes. More homes coming on the market and slower price growth in many areas are giving buyers better options and helping create a more balanced housing market. Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Real Estate News

Over half of new single-family homes built in 2025 were two or more stories, according to the Census Bureau’s Survey of Construction. But the share of homes started with two or more stories fell in 2025, reflecting increased building activity in regions that prefer single-story homes. Nationwide, the share of new homes with two or more stories fell from 52.5% in 2024 to 51.4% in 2025, while the share of new homes with one story rose from 47.5% to 48.6%. This share varied significantly across the nation. Two-story homes remain more popular in most areas of the country. But the areas seeing the most new homes built tend to prefer single-story homes. The Northeast and the West had higher shares of two or more stories, while the entire Central time zone saw more single-story homes.  Even in areas that prefer multistory homes, the single-story share is growing. For example, the single-story share in the Pacific has increased in seven of the last eight years, from 32.7% in 2017 to 47.5% in 2025. This could reflect the increased cost to build homes and developers focusing more on moderate and low-cost housing.  Source: National Association of Home Builders

Moving is never easy, but lately, more people are trying to keep the process quick, small, and breezy. In the first four months of 2026, bookings for help with a partial move were up 37% from the same period last year, while short-distance relocations jumped 29%, according to data shared by Taskrabbit. In addition, same-day bookings for moving help jumped 19%. These stats indicate that more people are moving smaller loads faster across fewer miles. In other words, micro-moves are on the rise.  “We’re definitely seeing a shift toward smaller, more frequent moves—people are moving for more immediate opportunities like a new job, a better apartment deal, a roommate situation changing, or simply wanting to try out a new city or neighborhood,” says Nick Friedman, co-founder of College HUNKS Hauling Junk & Moving. “We’re also seeing more people make decisions quickly—instead of planning a move months in advance, some customers are reaching out within days because they have more flexibility and fewer belongings to coordinate.” This tracks with the micro-moving trends Taskrabbit identified, especially, but not solely, in urban centers.  “While cities like New York, Chicago, and San Francisco are seeing strong growth in studio and small-unit moves, we’re seeing even faster growth in smaller, suburban markets, leading short-distance and local move bookings to rise nationally,” says Chris Ager, chief commercial officer at Taskrabbit. “This tells us that the idea of moving lighter and faster is resonating across many geographies, whether that means leaving a city for a suburb, moving between neighborhoods, or simply downsizing within an area.”  Source: Taskrabbit

Carson Austin began to worry after his home had been sitting on the market for a couple of months with barely any interest from potential buyers.  It was early 2025, and he had listed the 4,600-square-foot Georgetown, Texas, property for $1.6 million, which he thought was a competitive price, comparable to other large homes in the area. But mortgage rates were hovering around 7%, keeping buyers out of the market and sales stagnant. So Austin decided to try something a bit unconventional. He offered seller financing — an agreement in which the seller acts as the lender, typically providing the buyer with a short-term home loan. In Austin’s case, he held firm on the home’s sale price but offered a below-market interest rate to entice buyers. As soon as he offered the creative financing option, interest picked up. Within two days, the house was under contract with a buyer who agreed to a 35% down payment and a six-year seller-financed loan with a 4% interest rate. Seller or owner financing gained popularity in the 1970s and 1980s, when interest rates were sky-high, but it developed a bad reputation for lacking sufficient protections, particularly for low-income buyers. However, as mortgage rates have soared since 2022, the creative financing strategy has regained popularity, despite remaining a niche offering. The practice is increasingly common in higher-end home sales, according to Realtor.com. Sales involving seller financing grew by 8% in dollar volume to more than $30 billion between 2023 and 2024, according to Note Investor. ” Seller financing often appeals to buyers who want a below-market interest rate or who are struggling to qualify for a traditional mortgage. The so-called bridge loan from the seller, typically lasting about three years, provides the buyer with time to wait for rates to come down and find a traditional mortgage. Meanwhile, sellers can get an edge in the market and benefit from earning interest on the loan.  “At its best, seller financing creates genuine win-wins,” said Ryan Leahy, who founded MORE Seller Financing. But the practice can be financially and legally risky without the right protections. Leahy said that seller financing can have “lots of pitfalls and risk if it’s not done right.” Source: Business Insider