• Corporate
  • News
  • Market Forecast: Construction Spending, Mortgage Apps, and ADP Employment Report

Market Forecast: Construction Spending, Mortgage Apps, and ADP Employment Report

  • September 30, 2019

CMG image

Average mortgage rates are still historically low following the two recent Federal Reserve rate cuts.  This week in housing news, US construction spending comes out on Tuesday and the Mortgage Bankers Association (MBA) weekly mortgage application survey comes out on Sunday.  In jobs-related news, the ADP employment report is scheduled for release on Thursday. 

US construction spending tracks total spending on all private and public construction projects.  Overall construction spending increased 0.1% month-over-month.  Spending on public projects improved and spending on private projects declined.    Spending on private residential construction, specifically, increased 1.4% month-over-month driven by more single-family home building. 

The Mortgage Bankers Association (MBA) weekly mortgage application survey declined a composite 10.1% for the week ending 9/20.   New purchase application submissions declined 3.0% and refinance application submissions dropped 15.0%.  The data shows just how rate sensitive home buyers and homeowners have become.  Average mortgage rates have increased slightly this month.

The ADP employment report is based on data from approximately 400,000 US businesses employing approximated 23 million employees nationwide.  The data is limited to private businesses that use the ADP payroll system but is still used to gauge employment trends.  In September, the ADP employment report added a robust 195,000 jobs, confirming the labor market is still strong. 

A strong labor market and more construction activity could set us up for a strong housing market this Fall.  One of the biggest challenges buyers have faced in recent years has been lack of available homes for sale.  With single-family home building picking up, home buyers may soon have more inventory to choose from. 


Sources: CNBC, Econoday, MarketWatch, Mortgage News Daily, Reuters

  • Facebook Icon
  • Linked In Icon
  • Twitter Icon
  • Google Plus Icon

Latest Tweets

© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Broker and Lender #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (http://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1820).