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U.S. Hiring Surges – Employers added a quarter of a million jobs in September – The Department of Labor and Statistics reported that 254,000 new jobs were added in September, which exceeded the revised 159,000 new jobs that were added in August. It also blew away economists who were surveyed and forecasted 150,000 new jobs. The unemployment rate ticked down to 4.1% in September from 4.2% in August. Average hourly wages increased 4% year-over-year in September, up from a 3.8% annual increase in August. More people working, lower unemployment, and higher wages are inflationary. Bond yields and mortgage rates rose after the jobs report was released. Stock markets – Stock markets were on track for their first weekly loss in five weeks, but surged again on Friday after the September jobs report was released to end the week higher. The Dow Jones Industrial Average closed the week at 42,352.75, up 0.1% from 42,313.00 last week. It is up 12.4% year-to-date. The S&P 500 closed the week at 5,751.07, up 0.2% from 5,738.18 last week. The S&P is up 20.6% year-to-date. The Nasdaq closed the week at 18,137.85, up 0.1% from 18,119.59 last week. It is up 20.8% year-to-date. U.S. Treasury bond yields jumped on Friday after the September jobs report was released – The 10-year treasury bond closed the week yielding 3.98%, up from 3.75% last week. The 30-year treasury bond yield ended the week at 4.26%, up from 4.10% last week. We watch bond yields because mortgage rates follow bond yields. Mortgage rates – Every Thursday Freddie Mac publishes interest rates based on a survey of mortgage lenders throughout the week. The Freddie Mac Primary Mortgage Survey reported that mortgage rates for the most popular loan products as of October 3, 2024, were as follows: The 30-year fixed mortgage rate was 6.12%, up from 6.08% last week. The 15-year fixed was 5.25%, up from 5.16% last week. The graph below shows the trajectory of mortgage rates over the past year.
Freddie Mac was chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing. Their mandate is to provide liquidity, stability, and affordability to the U.S. Have a great weekend! |
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