{"id":595601,"date":"2026-01-13T20:33:13","date_gmt":"2026-01-13T20:33:13","guid":{"rendered":"https:\/\/drewdodds.vipmtginc.com\/blog\/?p=595601"},"modified":"2026-01-13T20:33:14","modified_gmt":"2026-01-13T20:33:14","slug":"weekly-mortgage-rate-update-labor-market-cooling","status":"publish","type":"post","link":"https:\/\/drewdodds.vipmtginc.com\/blog\/2026\/01\/13\/weekly-mortgage-rate-update-labor-market-cooling\/","title":{"rendered":"Weekly Mortgage Market Snapshot: Labor Market Cooling, Rates Edge Lower"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large is-resized\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/drewdodds.vipmtginc.com\/blog\/wp-content\/uploads\/2026\/01\/AdobeStock_1658144662-1024x559.jpeg\" alt=\"\" class=\"wp-image-595602\" style=\"aspect-ratio:1.8333810785647784;width:514px;height:auto\" srcset=\"https:\/\/drewdodds.vipmtginc.com\/blog\/wp-content\/uploads\/2026\/01\/AdobeStock_1658144662-1024x559.jpeg 1024w, https:\/\/drewdodds.vipmtginc.com\/blog\/wp-content\/uploads\/2026\/01\/AdobeStock_1658144662-300x164.jpeg 300w, https:\/\/drewdodds.vipmtginc.com\/blog\/wp-content\/uploads\/2026\/01\/AdobeStock_1658144662-768x419.jpeg 768w, https:\/\/drewdodds.vipmtginc.com\/blog\/wp-content\/uploads\/2026\/01\/AdobeStock_1658144662-1536x838.jpeg 1536w, https:\/\/drewdodds.vipmtginc.com\/blog\/wp-content\/uploads\/2026\/01\/AdobeStock_1658144662-2048x1117.jpeg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Staying informed in a shifting market is essential. Each week, we provide a 30,000-foot view of mortgage rate movement and the economic data shaping housing and lending conditions. Here\u2019s what stood out over the past week\u2014and what to watch next.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Mortgage Rate Movement<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>30-Year Fixed Rate (0 points):<\/strong><br>Since Monday, January 5th, market rates are <strong>0.125% lower week over week<\/strong>, continuing a modest downward trend.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Market Summary<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">December\u2019s economic data reinforces a clear theme: the U.S. labor market is cooling. Job growth missed expectations, revisions painted a weaker picture beneath the surface, and hiring momentum continues to slow. At the same time, housing construction fell to pandemic-era lows, highlighting persistent supply constraints that could reintroduce price pressure if demand strengthens as rates ease.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Key Takeaways from Last Week<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>December Jobs Report (BLS)<\/strong><br>Payrolls increased by <strong>50,000<\/strong>, falling short of expectations. While the unemployment rate edged down to <strong>4.4%<\/strong>, downward revisions to prior months point to underlying labor market softness.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Job Growth Concentration<\/strong><br>Employment gains were largely confined to <strong>health care, leisure, and hospitality<\/strong>. Excluding these sectors, overall job growth would have been negative\u2014underscoring broader weakness.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Private Payrolls (ADP)<\/strong><br>Private-sector employment rose by <strong>41,000<\/strong> in December, led by medium-sized businesses. While positive, the increase missed forecasts and reflects a slowing hiring trend.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Decelerating Hiring Momentum<\/strong><br>The 12-month average of private job gains sits near <strong>51,000 per month<\/strong>, compared to just <strong>20,000 per month over the past three months<\/strong>, signaling a meaningful slowdown.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Wage Trends<\/strong><br>Job switchers continue to see stronger wage growth (<strong>6.6% year over year<\/strong>) compared to job stayers (<strong>4.4%<\/strong>), though the gap has narrowed as hiring cools.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Broader Labor Market Signals<\/strong><br>Rising continuing jobless claims, declining job openings, low quit rates, and subdued hiring rates all point to what economists describe as a \u201clow-fire, low-hire\u201d labor market environment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Layoffs and Hiring Plans<\/strong><br>While December job cut announcements remained low, total layoffs for 2025 ranked among the highest on record. Meanwhile, hiring announcements fell to a multi-decade low, reinforcing caution among employers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Housing Starts<\/strong><br>Housing starts declined <strong>4.6%<\/strong>, reaching pandemic-era lows. Building permits also fell, highlighting constrained housing supply\u2014an important factor that could support home prices if demand improves alongside lower mortgage rates.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Looking Ahead<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The middle of the week brings a heavy slate of economic data:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tuesday:<\/strong> Consumer inflation data and new home sales<\/li>\n\n\n\n<li><strong>Wednesday:<\/strong> Wholesale inflation, existing home sales, and retail sales<\/li>\n\n\n\n<li><strong>Thursday:<\/strong> Weekly jobless claims<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These reports will help clarify whether the cooling trends continue\u2014and how they may influence mortgage rates and housing demand in the weeks ahead.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As always, our team is standing by to help navigate changing market conditions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Cheers,<\/strong><br><strong>Drew &amp; Team<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Staying informed in a shifting market is essential. Each week, we provide a 30,000-foot view of mortgage rate movement and the economic data shaping housing and lending conditions. Here\u2019s what stood out over the past week\u2014and what to watch next. Mortgage Rate Movement 30-Year Fixed Rate (0 points):Since Monday, January 5th, market rates are 0.125% [&hellip;]<\/p>\n","protected":false},"author":26,"featured_media":595602,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-595601","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsletter"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Weekly Mortgage Market Snapshot: Labor Market Cooling, Rates Edge Lower - Drew Dodds<\/title>\n<meta name=\"description\" content=\"Mortgage rates edged lower this week as labor market data signaled cooling job growth and housing starts fell to pandemic-era lows. 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