• Carlos Aguilar
  • News
  • Market Recap: ADP Employment Gains and Increase in Construction Spending

Market Recap: ADP Employment Gains and Increase in Construction Spending

  • January 06, 2017

Mortgage rates started the New Year with a drop from the previous week and dropped further by the end of the week.  In housing news, US Construction spending increased somewhat and mortgage applications dropped.  The ADP Employment report was also released this week, showing continued steady job growth. 

US Construction Spending increased 0.9% from October to November, the sixth increase in seven months.  The jump surpassed expectations of a 0.6% increase after October’s 0.5% gain.  Spending on residential construction is up 1%, driven by single-family home construction.  On a year-over-year basis, total construction spending is up 4.1% to $1.18 Trillion. 

The MBA mortgage purchase applications survey showed an unsurprising decline over the holidays.  New purchase applications are down 2% and refinances are down 22% for a composite index drop of 12%.  This week’s reading measures a two week period, since no report was issued over the Christmas holiday.  Mortgage applications tend to drop off over the holidays.  Additionally, the recent interest rate hike contributed to the drop in applications.  New buyers and potential refinancers may be holding off, as they wait for mortgage rates to level off. 

The ADP Employment Report showed the addition of 153,000 jobs in December.  While still a positive gain, the number is slightly less than predictions and significantly less than November’s addition.  Any job growth indicates a strong labor market, but the growth appears to be slowing its pace. 

After nine straight weeks of increases, mortgage rates appear to be leveling out.  Sean Becketti, chief economist with Freddie Mac, reported that this is the first time since 2014 that the year opened with a mortgage rate above 4%.  Most economists are forecasting steady growth in new purchases with a drop in refinances for 2017. 


Sources: Mortgage News Daily, HousingWire, MarketWatch, HousingWire, MarketWatch


Carlos Aguilar

NMLS # 791382

Carlos Aguilar

PHONE: (949) 864-8131

CMG Image
© 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 Lender License #MC1820 and Mortgage Broker License #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 (www.nmlsconsumeraccess.org).