HousingWire Daily Mortgage rates drop after shocking jobs Friday report
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Sep 6, 2025 
Logan Mohtashami, Lead Analyst at HousingWire, shares his insights alongside Editor-in-Chief Sarah Wheeler. They discuss the shocking jobs report that led to a significant drop in mortgage rates and the 10-year yield. The conversation highlights the Federal Reserve's cautious stance in adjusting policies despite weak job growth signals. They also delve into the complexities of economic forecasting and the critical role of labor market dynamics in shaping housing market trends. Tune in for a deeper understanding of these economic movements!
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Fed Prioritizes Labor Over Inflation
- The Fed shifted in late 2022 to prioritize labor data over inflation when setting policy.
- That labor-over-inflation stance keeps rates elevated until labor weakens enough to give the Fed cover to ease.
Recent Reports Show Labor Weakening
- Recent series of soft labor reports (job openings, ADP, BLS) imply the labor market is weakening.
- The Fed needs a clear labor-market deterioration before it feels comfortable cutting rates.
Bond Market Dropped Yields After Jobs Print
- Bond market reacted quickly to the weak jobs print, pushing the 10-year yield down and mortgage rates to year-to-date lows.
- The drop shows bond traders weigh labor-market weakness heavily versus inflation metrics.