Morning Business Report: Mortgage rates drop sharply as weak jobs report shakes economy

Mortgage rates saw their steepest single-day drop in more than a year, following a weaker-than-expected August jobs report.

(LILAMAX)- Mortgage rates saw their steepest single-day drop in more than a year, following a weaker-than-expected August jobs report. The average fixed 30-year mortgage rate fell to 6.29% as of Friday, the lowest level since last fall and down from a high of 7.04% in January.

The U.S. added just 22,000 jobs in August, well below forecasts. Black unemployment climbed to 7.5 percent, a rise attributed largely to federal job cuts that disproportionately affected Black women. Hispanic unemployment also ticked up, reaching 5.3 percent.

International postal service deliveries into the U.S. dropped sharply after a tax loophole tied to low-cost imports was closed. The Universal Postal Union reported that suspension of the duty-free de minimis exemption led to an 81 percent plunge in exchanges by August 29.

On Wall Street, stocks wavered Friday as investors weighed the weak jobs data. While the slowdown raised expectations for an interest rate cut this month, it also fueled concerns about a possible recession.

In retail, apparel brands including Levi’s and Aritzia are testing consumer tolerance for higher prices despite tariff pressures. Both companies say demand has held steady after raising prices, with Levi’s reporting no slowdown in July sales and Aritzia noting little change in customer orders.

Treasury Secretary Scott Bessent said he is confident President Donald Trump’s tariff plan will prevail at the Supreme Court, but warned that a loss would force the government to issue massive refunds. National Economic Council Director Kevin Hassett added that the administration has alternative legal avenues to pursue if the tariffs are struck down.