October Jobs Come in Hot: +165,000 and 4.1% Unemployment

The U.S. Bureau of Labor Statistics said total nonfarm payroll employment rose by 165,000 in October, and the unemployment rate changed little at 4.1% (it was 4.2% in September). Job gains were led by professional and business services (+70,000), health care (+42,000), transportation and warehousing (+25,000) and manufacturing (+19,000). Average hourly earnings rose 0.4% to $38.00 and are up 3.1% over the past 12 months. The average workweek held at 34.4 hours. Labor force participation was 61.9%, and the employment-population ratio was 59.3%.

Revisions also mattered: August was revised up by 53,000 to +186,000, and September was revised up by 31,000 to +60,000 — a combined 84,000 more jobs than previously reported. The next Employment Situation report (November) is scheduled for Friday, Dec. 4, 2026, at 8:30 a.m. Eastern.

Markets reacted quickly. After the print, Treasury yields moved higher, putting fresh pressure on the recent mortgage-rate rally. The Fed held the federal funds rate at 3.75%–4% at its Oct. 27–28 meeting; the Fed does not set mortgage rates directly, but stronger growth and wage data can keep longer-term yields — and therefore mortgage rates — firmer than a soft jobs print would. For more on this week’s rate backdrop, see our Nov. 5 market update and Nov. 4 notes.

What it means for you: a steady job market is good for household budgets in the Santa Clarita Valley. The flip side is that hot payrolls and rising wages can slow or reverse weekly rate dips. Buyers who were waiting for rates to keep falling should plan for volatility — rates can reverse quickly after strong jobs or inflation data. Sellers should not assume cheaper financing will suddenly refill open houses overnight. Sources: BLS Employment Situation, CNBC and National Mortgage Professional.

Freddie Mac: Third Straight Weekly Rate Drop to 7.18%

On Thursday, Nov. 5, Freddie Mac’s Primary Mortgage Market Survey reported the 30-year fixed-rate mortgage averaged 7.18%, down from 7.24% the prior week and the third consecutive weekly decline. A year ago, the 30-year averaged 6.22%. The 15-year fixed averaged 6.57%, down from 6.60% (year ago: 5.50%).

“Mortgage rates continued their downward trajectory this week, improving the environment for prospective homebuyers against a backdrop of strong economic growth,” said Sam Khater, Freddie Mac’s chief economist. That second half of the quote is the tension in today’s headline: rates had been easing, but a strong economy is exactly what can keep them from falling much further.

Remember what PMMS measures: conventional, conforming, fully amortizing purchase loans with 20% down and excellent credit — a national average, not a personal quote. Local pricing for Santa Clarita and LA County buyers still depends on credit, down payment, loan type and day-to-day bond-market moves.

What it means for you: the three-week Freddie Mac decline was real progress from the recent highs, but Friday’s jobs print puts that rally on notice. Buyers in Valencia, Saugus, Canyon Country and Newhall should lock or float based on a clear plan, not a hope that weekly averages keep sliding. Sellers who price correctly still stand out while purchase demand remains selective. Homeowners weighing a refinance should compare today’s payment to their current one and stress-test a rate that is a little higher, not only a little lower. Stronger growth can support incomes and home demand over time, but it also raises the risk that mortgage rates stay higher for longer. Sources: Freddie Mac PMMS release and Freddie Mac PMMS.

Andy & Rebekah, Entity Realty, entityrealty.com

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Andy Martinez Jr., Mortgage Loan Originator | NMLS #2171006 · Entity Mortgage and Realty, Company NMLS #2371431 · CA DRE #01978202 · 26254 Prima Way, Santa Clarita, CA 91350 · Equal Housing Opportunity. General information only, not a commitment to lend. Approval, rates and terms depend on credit, income, property and program guidelines and can change.