September 9, 2026 – Labor Day Jobs

Economic Commentary

Over Labor Day weekend the markets were able to ponder the latest employment report. The job sector has been up and down for the past eighteen months and after a dismal report in July, there was hope for an upturn with regard to the August numbers. As it turns out, in August the economy added 162,000 jobs.  In addition, the past two reports were revised upward by 55,000 jobs resulting in a net gain of 217,000 for the month. The headline unemployment rate remained at 4.1%.  Overall, these numbers were seen as a definite rebound from the lackluster July report.

On the inflation side, wage growth increased by 0.3% from July and 3.1% year-over-year.  These numbers are vitally important because it is imperative that the American consumer’s wage growth meets or exceeds the growth in prices that consumers are experiencing.  We are not only talking about everyday gas and other commodity prices, but long-term costs such as housing.  Strong wage growth helps make mortgage and rent payments more affordable in the long run. Of course, strong wage growth can also fuel inflation, which is something that the Federal Reserve is watching very closely.

Speaking of the Fed, they are meeting next week for the first time since their July get together.  The minutes of their July meeting were released in mid-August and there was certainly some inclination towards raising their benchmark interest rates. The August jobs report will likely add to this sentiment.  Despite the concern regarding increasing inflation, we had a fairly benign consumer price index report released last month.  The CPI index for August is due to be released this Friday and will serve as another important reading for the Fed to chew on when they meet next week. Another bit of good inflation news would be a good bit of ammunition to hold the hawks off at this meeting.

Weekly Interest Rate Overview

The Markets. Mortgage rates continued higher in the past week as the conflict in the Middle East flared up and expectations for continued inflation stayed relatively high. According to the Freddie Mac weekly survey, 30-year fixed rates rose to 6.71% last week from 6.66% the previous week. In addition, 15-year rates increased to 6.04%. A year ago, 30-year fixed rates averaged 6.50%, 0.21% lower than today. Attributed to Freddie Mac: The 30-year fixed-rate mortgage averaged 6.71% this week. Purchase demand has remained relatively stable indicating steady interest from buyers adapting to evolving market conditions.  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

Despite lagging sales, current homeowners remain in a strong position, continuing to benefit from the home price appreciation of recent years. Earlier this spring, NAR’s data showed that price growth has helped the typical homeowner accumulate about $128,000 in housing wealth over the past six years alone. Housing inventories remain limited in many markets, allowing sellers to retain an advantage in pricing their home while buyers contend with fewer choices this summer. The number of homes for sale in July fell 1.9% compared to June, and inventories are down 0.6% from July 2025’s already low levels. Facing little competition, owners are selling relatively quickly: Nationally, the median time on market in July was 29 days, according to NAR’s latest data. Entering the housing market remains tough for first-time buyers. Without equity from a previous home sale toward a purchase, many are having a hard time competing as higher prices and mortgage rates stretch affordability. First-time buyers comprised 29% of existing home sales in July, down from 33% in June but still up from 28% a year ago, according to the July 2026 REALTORS® Confidence Index Survey. Meanwhile, investors, second-home buyers and repeat buyers who can leverage cash from a previous sale are using their buying power: About a quarter of the market in June and July paid cash. Source: NAR

Cash buyers are losing some of the ground they gained during the pandemic housing boom, creating a slightly more favorable market for borrowers relying on mortgage financing. All-cash purchases accounted for 31.4% of home sales during the first four months of 2026, down from 32.3% during the same period last year, according to a new Realtor.com report. The change was modest, but the underlying sales figures showed cash buyers pulling back faster than the market overall. The number of cash transactions fell 11.2% year over year, compared with an 8.5% decline in total home sales. “Cash buyers aren’t disappearing; they’re simply becoming less dominant as the housing market finds its footing,” said Hannah Jones, senior economist at Realtor.com. “More inventory and moderating prices are giving financed buyers more opportunities to compete.” The national median sale price rose only 0.2% year over year during the period covered by the report. That was down from 1.8% growth in 2025 and well below the 15.4% increase recorded at the market’s 2021 peak. Slower price growth, improving inventory, and fewer bidding wars may reduce some of the pressure on borrowers who cannot waive financing contingencies or close as quickly as cash purchasers.  Still, a 0.9-percentage-point decline in cash share does not represent a wholesale reversal. Buyers without financing continued to account for nearly one in three transactions nationally, and the prevalence of cash varied widely by market and price range.  Source: National Mortgage Professional

Clean homes with high-end filtration systems for air and water are among the top three most important features sought by home hunters in America. More than one-third (36%) of U.S. house hunters say a “clean” home, one with high-end filtration systems for air, water, etc., is among the top three most-important features in the next place they live. This is based on a Redfin survey conducted by Ipsos. Redfin noted that makes it the most common priority for prospective homebuyers, along with security systems out of a list of 22 features. Redfin said, in fact, that clean homes and security systems outrank every other feature it asked about, by a longshot. Views come in third, with one-quarter (25%) of prospective buyers saying they’re a top priority, followed by smart-home technology (20%). Backup power generation — such as solar panels or generators—round out the top five, with 19% of house hunters ranking it as a top three priority. Redfin noted that climate resilient upgrades or features also are important to prospective buyers, with one in seven (14%) ranking it as one of their top considerations. Features that take health and climate risks into account are ranked higher than luxurious upgrades like home theaters (7%) and outdoor kitchens (10%). The survey wasn’t conducted in response to wildfire and smoke emergencies, but the results underscore a broader trend. Prospective homebuyers are placing a premium on features that help create a healthier indoor environment. For example, high-end air and water filtration systems can help reduce exposure to smoke and other pollutants, while growing interest in climate-resilient upgrades suggests buyers are increasingly looking for homes that can better protect them from the impacts of extreme weather and environmental risks.  Source: MP Daily