What the Fed should do next, according to a mortgage veteran
“The Fed needs to make sure that everyone understands that they maintain their dual mandate, and that inflation is more important right now than unemployment, because we’ve seen solid jobs numbers,” she said.
“They need to put a lid on inflation and raise rates.”
The August jobs report, which showed 162,000 payroll gains with the unemployment rate holding steady at 4.1%, gave policymakers little room to cite a softening labor market.
A stronger-than-expected jobs report is putting a September Fed rate hike back in focus.
The US economy added 162,000 jobs in August, with unemployment holding at 4.1%, prompting renewed discussion about the Federal Reserve’s next policy move.https://t.co/B0iBjDoGsY
— Mortgage Professional America Magazine (@MPAMagazineUS) September 4, 2026
For brokers who watched the four straight weeks of 30-year mortgage rate increases before the July FOMC meeting, the pattern underscored how quickly the bond market moves ahead of Fed signals.
Mike Fratantoni, Senior Vice President and Chief Economist at the Mortgage Bankers Association (MBA), told Mortgage Professional America in July that the 9-3 split vote to hold was a clear leading indicator.
