09/04/2026
The jobs report just gave the Fed another reason to keep rates higher for long!
August jobs data came in much stronger than expected:
-162k jobs added vs. 53k expected
-Unemployment stayed at 4.1%
-July was revised from a loss of 23k jobs to a gain of 21k
-Wages increased 0.3% for the month and 3.1% year-over-year
A stronger labor market makes it harder for the Fed to justify cutting rates — and it puts a September rate hike back on the table. After the report, the market moved the odds of a September hike to around 60%.
Mortgage rates are already around 6.7% for a 30-year fixed, so buyers are still dealing with a pretty significant affordability hurdle.
The good news is that this isn't necessarily bad for the housing market. A strong job market means people are working, earning money and buying homes. We are still seeing a sellers market with a slight lean towards buyers.
What I’m going to keep an eye on now is CPI on September 11. Next week’s CPI report could completely change the conversation. If inflation comes in hot, rates could stay higher for longer. If inflation comes in cooler, we could see some relief.
Adam J. Gizinski
Virginia Realtor
(202) 997-8286
Real Broker, LLC | McLean, Virginia
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