• Christopher Terry
  • News
  • Market Recap: Construction Spending Declines, Mortgage Apps Mixed, ADP Employment Adds Job

Market Recap: Construction Spending Declines, Mortgage Apps Mixed, ADP Employment Adds Job

  • July 05, 2019

CMG Image

Mortgage rates continued to swing lower, amidst growing speculation surrounding a Federal rate cut later this year.  Construction spending pulled back.  New purchase mortgage application submissions increased, and refinance mortgage application submissions decreased.  The ADP employment report added fewer jobs than expected but was positive.  

US construction spending declined 0.8% month-over-month in April to a seasonally adjusted annual rate of $1.3 trillion.  Year-over-year, construction spending is down 2.3%.  Spending on both private and public construction projects decreased.  Residential spending is down 0.6% month-over-month, the fifth straight month of declines.

Mortgage application submissions were mixed for the week ending 6/28.  New purchase application submissions increased 1.0% and refinance application submissions decreased 1.0% for a composite decrease of -0.1%.  Overall, the MBA has a favorable outlook on this summer’s mortgage market.  MBA economist, Joel Kan, commented, “a still-strong job market, improving affordability and lower mortgage rates continue to support growth.” 

The ADP employment report showed the addition of 102,000 in June.  The gain was smaller than expected, but much larger than May’s figure.  Large businesses added 65,000 jobs in June and small businesses lost 33,000 jobs.  The data suggests the job market is throttling back.  Unemployment remains near an all-time low, but businesses are exerting more caution with hiring. 

Lower mortgage rates are stimulating housing activity this summer.  Home buyers who were previously priced out of the market or homeowners who could benefit from a refinance may want to take advantage of lower rates.  If you are interested in a home purchase or refinance, let me know. 


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

Christopher Terry
Loan Officer
NMLS # 1166673
Branch NMLS # 1711540

Christopher Terry

PHONE: (916) 412-7528

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).