Hi, this is Chris Nash with your market update.
The first full week of 2026 brought a heavy dose of labor market data, and the overall message remains consistent: the job market continues to soften.
According to the Bureau of Labor Statistics, December job growth fell short of expectations. Employers added 50,000 jobs, well below the 73,000 forecast. In addition, October and November payroll figures were revised lower by a combined 76,000 jobs. The unemployment rate did tick down slightly, from 4.5% to 4.4%.
Private-sector data told a similar story, with just 41,000 jobs added in December following a loss of 29,000 in November. While that rebound provides some short-term relief, the broader trend remains sluggish. Over the past five months, private payrolls have increased by just 27,000 jobs total, underscoring a clear slowdown in hiring activity.
Other labor market indicators also show more cooling. Continuing jobless claims remain elevated, job openings have declined, annual job cuts are still high, and hiring plans remain muted across many industries.
Delayed government data showed that housing starts fell 4.6% month over month in October, reaching their lowest level since the beginning of the pandemic. Building permits, a key signal of future construction activity, also edged lower by 0.2%.
Lastly, President Trump announced he has instructed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds. The market reacted positively to the news, and this is something we’ll be watching closely in the weeks ahead.
Whether you’re considering a purchase, a refinance, or simply want to review your options, I’m here as a resource. Feel free to reach out any time.
