RE Market Pulse

Every week, I look at the shifts shaping the market — what’s changing, where momentum is building, and what sales professionals need to keep in focus. Last week’s jobs report had a significant impact on mortgage rates, dropping them to 11-month lows. The jobs report underscores a continued deceleration in the labor market, reinforcing expectations for a potential reduction in the federal funds rate at the Federal Open Market Committee (FOMC) meeting on September 16-17. Here’s what that could mean for your clients — and your business — following the first week of September:

September 8, 2025

JOB GROWTH CONTINUES TO SLOW, SIGNALING A COOLING ECONOMY. Job growth in August came in below expectations, with the U.S. economy adding just 22,000 total non-farm payroll jobs, according to employment data released Friday by the U.S. Bureau of Labor Statistics (BLS). While July’s figures were revised upward slightly, June’s data was adjusted downward to reflect a net loss of 13,000 jobs, marking the first monthly decline since December 2020. The unemployment rate hit 4.3% — still historically low, but the highest it’s been since October 2021. Economists say this is further evidence of a cooling labor market, and largely agree that the softer report nearly guarantees the Federal Reserve will cut interest rates at its meeting later this month. Full Story from HousingWire →

· Why this Matters: Economists expect the Fed to shift policy toward neutral in light of this report, with a September rate cut as a first step. Mortgage rates are already responding to this news (more on that below) — and rate drops can have a meaningful impact on affordability, reawakening areas of opportunity.

MORTGAGE RATES PLUMMET TO FALL 2024 LEVELS. The monthly jobs report is often more capable of causing big reactions in rates — more so than any other economic data. It happened last month in grand fashion, and it’s happening again this month. In general, weaker jobs numbers prompt investors to buy bonds, and when investors buy bonds, the price of bonds goes up. When bond prices go up, rates go down. The net effect last Friday: the average rate for a 30-year fixed mortgage dropped 16 basis points, from 6.45% to 6.29%, its lowest level since October 3, 2024, and the largest single-day drop since August 2024. Full story from Mortgage News Daily →

· Why this Matters: Use your expertise and market knowledge to help clients understand not just what’s happening, but why it matters to them. Use current shifts to re-engage your

hot list and revisit conversations with those who’ve been hesitant to move forward. Build tailored scenarios that address today’s buyer concerns (buydowns, lock-and-shop strategies, or payment threshold planning). These tools can help clients see a clear path forward. For sellers, guide them to the price to the market that exists right now.

FED GETS GREEN LIGHT FOR INTEREST RATE CUTS. Following the unemployment numbers in this week’s Jobs report, the Federal Reserve is now seen as likely to cut interest rates multiple times before the end of the year, according to the CME Group’s FedWatch tool. Mortgage rates hinge primarily on the yields of 10-year Treasury notes, which plunged Friday to their lowest level since early April. This signals further easing for mortgage rates is likely in the coming days. Although a quarter-point cut to the Fed’s policy rate had been viewed as likely at the next Federal Open Market Committee meeting on September 17, the weakness of the August jobs report raised speculation of a larger half-point cut. Full story from Realtor.com →

· Why this Matters: Use your expertise to help clients navigate the nuances of the current landscape and anticipate what’s ahead. Prepare concise, client-friendly talking points that explain: how changes in the policy rate impact mortgage pricing, what a potential Fed rate cut next week could mean for monthly payments, and why making informed decisions now is smarter than trying to time the bottom of the market. Encourage buyers to focus on readiness and budget alignment; empowering them to act with confidence. For sellers, stress the importance of pricing strategically from the beginning, positioning their home competitively based on today’s rates and buyer expectations.

THE BOTTOM LINE: The current environment presents real opportunities to accelerate activity. Use rate relief and a more defined policy outlook to re-engage qualified buyers, guide sellers toward realistic and competitive pricing, and ensure every conversation is grounded in today’s financial realities. Approach each interaction informed, steady, and proactive. That’s how you build trust, instill confidence, and drive results.

Disclaimer: this is a compilation of industry news from trade media and industry groups, it does not share any forward-looking predictions or projections.