Welcome to Mortgage Porter Weekly for the week of October 5, 2026.
Recap From Last Week
Last week featured a range of economic reports on inflation, employment, home prices, and overall growth.
Inflation came in below expectations. The headline PCE increased 0.3% in August, with annual inflation holding at 3.4%, lower than the 3.7% estimate. Core PCE, which excludes food and energy, rose 0.2%, with annual core inflation at 3%, below the 3.3% forecast. The Dallas Fed’s Trimmed Mean measure showed underlying inflation at 2.2% over the past year, closer to the Fed’s 2% target.
The labor market is showing signs of softening. The Bureau of Labor Statistics’ jobs report for September showed the economy added just 29,000 jobs, significantly below expectations, while the unemployment rate rose to 4.2% from 4.1%. ADP estimated private employers added 90,000 jobs, a rebound after a three-month slowdown. Job openings totaled 7.08 million, also below expectations, while new unemployment claims remain low by historical standards.
The Fed has two meetings left this year. Upcoming inflation and labor reports will be key as policymakers evaluate their next steps.
Growth was revised upward. The second quarter GDP grew at an annualized rate of 2.2%, higher than the previous estimate of 1.5%.
The ongoing conflict remains a major factor for mortgage rates. The U.S.-Israel war has entered its eighth month, with tensions intensifying over the Strait of Hormuz, impacting oil prices, inflation, and mortgage rates. The G7 announced an emergency release of crude and diesel stocks. However, meaningful improvements in mortgage rates are unlikely until the conflict subsides.
Optimal Blue Index Mortgage Rates
Optimal Blue reported that the average 30-year conforming fixed rate, as of last Friday, October 2, was 7.379%.
This index reflects about 35% of mortgage transactions nationwide (lenders who use Optimal Blue). It is not a rate quote, and last week’s rates cannot be locked today. Your credit score, loan-to-value ratio, and other factors will influence the rate you qualify for. This is intended to provide a general sense of rate trends.
I can provide you with current rates based on your personal situation for homes in Washington state. Get your personalized rate estimate here.
This Week’s Economic Calendar
This week’s calendar is light, so mortgage rates are likely to be influenced primarily by the ongoing conflict with Iran.
- Monday: No economic news
- Tuesday: ADP Weekly, Fed speakers
- Wednesday: FOMC minutes
- Thursday: Jobless claims
- Friday: Consumer sentiment
The next FOMC meeting is scheduled for October 27–28, 2026. The CME FedWatch Tool currently shows a 24% chance of a rate increase.
MBS Highway: Mortgage-Backed Securities
As of just before noon Pacific on Monday, mortgage-backed securities were down 10 basis points, a slight improvement from earlier in the morning.
Spotlight: Buy Before You Sell with a Bridge Loan
A bridge loan allows you to access the equity in your current home to use for the down payment and closing costs on your next home. Typically, your current home needs to be listed with a real estate broker, and there are fees associated with the bridge loan.
Our bridge loan eliminates the payments due on your current residence. This can help you qualify for your next home and avoid carrying two housing payments at once.
It’s important to compare the costs and benefits of using a bridge loan versus buying contingent on the sale of your current home. With a bridge loan, you may be able to offer a lower price or negotiate a seller credit, which can help offset the cost of the bridge loan.
Understanding your options can help you make an informed decision.
Read more:
Bridge Loan Guide for Buying and Selling a Home in Washington State
Home Seller’s Guide for Washington State
Questions About Your Situation?
If you have questions about your specific situation, whether you’re buying, refinancing, considering a retirement mortgage, or just trying to figure out your options, I’d love to hear from you.
Rhonda Porter, Mortgage Advisor, NMLS #121324 | Serving Washington State, including King, Pierce, Snohomish, Kitsap, and Island Counties. The Optimal Blue index reflects about 35% of mortgage transactions nationwide and is not a rate quote. Rates change daily, and your rate depends on your credit score, loan-to-value, and other factors. This post is for informational purposes only and is not a commitment to lend.