The latest jobs report was sobering.
The BLS reported that the U.S. added only 22,000 jobs in August. While July’s numbers were revised slightly upward, June revisions revealed a net loss of 13,000 jobs. The unemployment rate climbed to 4.3%—its highest in nearly four years. For the individuals and families behind these statistics, fewer opportunities and rising unemployment create very real hardship, and it’s important to acknowledge that pain.
At the same time, the bond market responded to the weak jobs report by pushing down the 10-year U.S. Treasury rate, with the Fed now signaling a short-term rate cut at its upcoming meeting.
For borrowers and lenders, lower interest rates create breathing room. For multifamily developers, this shift makes more projects viable, improves cash flow, and helps bring new housing supply to market—something our communities desperately need.
Housing is a cornerstone of the economy, accounting for 15–18% of GDP.
Residential investment—spanning single-family and multifamily construction, remodeling, and manufactured housing—represents 3–5% of GDP, while housing services such as rents and utilities contribute 12–13%. When rates fall and housing activity accelerates, the benefits ripple broadly across the economy.
So we find ourselves at a delicate intersection: a jobs market showing signs of stress, yet conditions that are easing for housing investment and affordability. As we look ahead, it’s essential to hold space for both truths—empathy for those impacted by rising unemployment, and optimism that renewed strength in housing can serve as a stabilizing force.
For developers, the FHA’s commercial multifamily programs provide a timely avenue to move projects forward under today’s rate environment.
At AGM, we’re here to help clients navigate these opportunities with care, insight, and experience.
About AGM Financial
Founded in 1990, AGM is a leading FHA lender and GNMA seller/servicer. From new construction and substantial rehab to acquisition or refinance — for both market-rate and affordable projects — AGM gets the deal done. Family-owned with over 30 years of experience, the firm has closed over $10 billion in FHA-insured multifamily project loans nationwide. We underwrite, fund, and service all of our loans. Developers and owners can count on AGM to be accessible, transparent, consistent, and ready to lend. From new construction to substantial rehabilitation to acquisition and refinance — for both market-rate and affordable projects — we can get the deal done. To learn more about AGM, call 800.729.4266 or visit agmfinancial.com.