U.S. employers added 29,000 jobs in September, and the unemployment rate rose to 4.2% from 4.1% in August. At the same time, the reported national average for a 30-year fixed mortgage climbed to 7.28%—its highest reading since November 2023. The figures point to a softer hiring month and higher average home-borrowing costs, but they do not establish that one caused the other or predict what any individual borrower will be offered.
What changed in September’s jobs report?
The Associated Press reported on October 2, 2026, that U.S. employers added 29,000 jobs in September, well below the roughly 90,000 economists had expected. August’s job gain was revised to 133,000, and revisions to July and August together removed 60,000 jobs from the previously reported totals. The unemployment rate rose to 4.2% from 4.1% in August.
Average hourly wages were 3% higher than a year earlier, the smallest annual increase since May 2021, according to the AP account. That is a separate measure from payroll growth: it describes wage changes, not how many jobs were added.
The AP report does not provide enough labor-force detail to identify why unemployment rose by a tenth of a percentage point. A higher rate alongside weak payroll growth signals a less favorable hiring picture, but these numbers alone do not prove the economy is in recession.
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How high are mortgage rates this week?
The AP reported Freddie Mac’s weekly national average for a 30-year fixed-rate mortgage at 7.28%, up from 7.03% the previous week and 6.34% a year earlier. It was the sixth consecutive weekly increase and the highest reading since November 22, 2023, when the average was 7.29%.
The 15-year fixed-rate average was 6.60%, compared with 6.42% the previous week and 5.55% a year earlier. These are reported national weekly averages, not guaranteed quotes or rates available to every borrower. The roundup does not specify an individual borrower’s credit, down payment, loan type, points, fees, or local conditions.
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| Reported fixed-rate average | This week | Previous week | One year earlier |
|---|---|---|---|
| 30-year | 7.28% | 7.03% | 6.34% |
| 15-year | 6.60% | 6.42% | 5.55% |
Both averages rose over the week and year. A 15-year term means repaying principal over a shorter period than a 30-year term; comparing the rates alone does not establish which loan is affordable. The AP roundup does not provide a loan amount or fees from which to calculate a payment or total borrowing cost.
What do the mixed economic indicators show?
Other figures in the AP’s October 2 roundup point in different directions. They refer to different release or survey periods, so they should not be treated as measurements of one moment.
- Consumer confidence: The Conference Board’s September index was reported at 81.9, down 6.7 points from 88.6 in August. The present-situation measure was 109.3, down 7.9 points; the short-term outlook was 63.6, down 5.9 points. Responses were collected September 1–23. The Board’s Consumer Confidence page describes the index.
- Job openings: The AP reported 7.08 million openings in August, down from a revised 7.34 million in July. Layoffs fell and quits changed little, according to the report.
- Consumer prices: Prices were reported up 3.4% from a year earlier in August and 0.3% from July. Core prices rose 3% year over year and 0.2% month over month. The monthly increase accelerated from July’s 0.1% even as the annual rate eased.
- Economic growth: Second-quarter GDP growth was revised to a 2.2% annual rate, up from an earlier 1.5% estimate, after 2.5% growth in the first quarter.
- Markets: The AP said bond yields eased after the jobs report and major stock indexes moved higher toward recent records. That describes the reported market reaction; it is not a forecast.
What the figures mean for households
For workers, September’s low payroll gain, downward revisions, and rising unemployment rate are reasons to watch hiring conditions, while the openings and wage figures add separate context. None of these statistics guarantees what will happen to one person’s job prospects or pay.
For homebuyers and homeowners considering a new loan, the 7.28% figure is a benchmark for the week, not a personal mortgage offer. Requesting quotes for the same loan amount, term, points, and fees makes lender offers more comparable. The reported increase does not establish why mortgage rates moved or where they will go next.
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