Brief
US consumer confidence falls, mortgage rates hit three‑year high as unemployment ticks up
The Conference Board reported a plunge in confidence while Freddie Mac said the 30‑year mortgage rate rose to its highest level in nearly three years.
By Felo News Desk · Published
The Conference Board said on Tuesday that its consumer confidence index dropped to 81.9 in September, the lowest reading since April 2014, while Freddie Mac reported the benchmark 30‑year fixed‑rate mortgage rose to 7.28%, the highest level in almost three years. The Labor Department also noted the unemployment rate edged up to 4.2% in September.
What happened
During September, the consumer confidence index fell 6.7 points from 88.6 in August to 81.9, with the present‑situation score slipping to 109.3 and the short‑term outlook to 63.6. At the same time, the average long‑term mortgage rate increased from 7.03% the previous week to 7.28%, according to Freddie Mac, marking the sixth consecutive weekly rise and the highest level since 22 Nov 2023. The 15‑year fixed‑rate mortgage also rose, reaching 6.60% from 6.42% a week earlier. In the labour market, employers added only 29,000 jobs in September, far below expectations, and the unemployment rate rose from 4.1% in August to 4.2%.
What the reports add
The Independent highlighted that respondents cited high gas, goods and services costs as primary worries in write‑in comments. It also noted that the unemployment rise comes a month before the mid‑term elections, potentially affecting the political landscape. Freddie Mac’s data showed the 30‑year rate is now the highest since late 2023, while the 15‑year rate is also at a multi‑year peak.
What was said
The Independent quoted the Conference Board’s September survey, stating that confidence “sank to the lowest level in more than a decade” and that “prices remain elevated and wages stagnate amid the ongoing Iran war.”
How it came about
Earlier this year, Felo News reported on rising mortgage pressures in the United Kingdom (mortgage‑rates‑climb) and the United States’ housing market (mortgage‑rates‑top‑7). Those pieces documented the broader trend of higher borrowing costs that now extends to the US long‑term mortgage market.
Key facts
- Consumer confidence index fell to 81.9 in September, the lowest since April 2014. (independent.co.uk)
- The 30‑year fixed‑rate mortgage rose to 7.28%, the highest level in nearly three years. (independent.co.uk)
- US unemployment rate increased to 4.2% in September, up from 4.1% in August. (independent.co.uk)
Sources
- [1] independent.co.uk — originally reported as “America In Focus: Unemployment rate climbs, mortgage rate hits nearly 3 year high”
