The jobs report for August surprised economists, revealing that only 22,000 jobs were created, which raised the unemployment rate to 4.3%. Investors quickly turned to bonds, causing Treasury yields to drop to their lowest levels in three years, and discussions about decreasing mortgage rates intensified.
In this First Friday economic update, Paula Pant explains:
- The reasons the August jobs report unsettled the markets.
- How declining Treasury yields may lead to lower mortgage rates and create a favorable environment for homebuyers.
- The implications of Jerome Powell’s speech at Jackson Hole regarding the Federal Reserve's approach.
- Why the markets are now anticipating a rate cut in September and its potential effects on your finances.
This episode serves as a guide if you are considering buying or selling a home, or if you simply want to comprehend the current economic landscape.
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The jobs report for August 2025 surprised economists by showing just 22,000 jobs added and an unemployment rate of 4.3%. Paula Pant discusses how sluggish job growth, decreasing Treasury yields, and remarks from Jerome Powell regarding the Federal Reserve might lead to lower mortgage rates, reinvigorate the housing market, and influence the upcoming rate cut.