Analysts Back December Fed Rate Hike Following Strong October Jobs Report

The U.S. economy added 165,000 non-farm payroll jobs in October, strengthening the case for a Federal Reserve rate hike in December, according to reporting by HousingWire, Redfin News, Realtor.com, and MPA Magazine. The U.S. Bureau of Labor Statistics released the employment data on November 6, 2026. The Mortgage Bankers Association and Oxford Economics both stated that the figures give the Federal Open Market Committee the cover required to act at its upcoming meeting. [1][3][4][5][6][7]

The 165,000 job gain in October surpassed the average monthly gain of 48,000 jobs seen over the previous 12 months, HousingWire reported. Net revisions also added 84,000 jobs to prior months, with August payrolls revised up by 53,000 and September figures revised up by 31,000, according to HousingWire, Redfin News, and Realtor.com Research. Redfin News noted that the six-month moving average of job creation reached 83,000 jobs per month. [3][4][6]

Data cited by MPA Magazine shows the national unemployment rate dropped to 4.1 percent in October. HousingWire reported that the U-6 underemployment rate increased to 7.9 percent. Additionally, Realtor.com Research reported that nominal wage growth reached 3.1 percent, though it continues to trail inflation. [1][3][6]

Oxford Economics was established in 1981 in Oxford, England, as a commercial venture in partnership with Oxford University's business college to provide economic forecasting. As FTMQ Real Estate reported earlier, U.S. nonfarm payrolls expanded by 165,000 in October, which bolstered expectations among analysts that the Federal Reserve will raise benchmark interest rates during its December meeting. [11][12][13]