• Doug Luza
  • News
  • Market Recap: Job Market Strengthens, Construction Improves, and Rates Continue to Rise

Market Recap: Job Market Strengthens, Construction Improves, and Rates Continue to Rise

  • December 02, 2016

Mortgage rates started to decline slightly this week, and then ticked back up. The ADP Employment report showed substantial job growth, pending home sales posted a modest increase, and construction spending increased to a 7-month high.

The ADP Private Employment report posted gains this month.  Traditionally any improvement with income and employment rate relays into an improvement in the housing market. This month’s report showed an addition of 216,000 jobs in the private sector, well surpassing the expectations of 160,000 jobs. 

Pending home sales measures the number of homes under contract, but not closed deals. Pending sales of existing homes are up only 0.1% in October, a small increase but growth nonetheless.  The numbers only show declines in one region, the South.  Its 1.3% drop offset gains elsewhere including the Northeast where sales were up 0.4%, the Midwest where sales were up 1.6%, and the West where sales were up 0.7%.  All indices showed gains on a year-over-year basis. 

Construction spending increased 0.5% in October to $1.173 Trillion, the highest level since March 2016.  Previous reports for September and August were also revised, September was adjusted from a 0.4% decline to no change, and August’s 0.5% decline was changed to a 0.5% increase.  Construction spending is up 3.4% on a year-over-year basis.  The gains were driven by home building and public outlays.

Ahead of this month’s FOMC meeting, mortgage rates are likely to hover and not increase or decrease drastically.  Rising rates are turning away refinancers, but many homebuyers are looking to expedite the process to finalize their purchases before further rate increases.   


Sources: Mortgage Daily News, MarketWatch, CNBC, Reuters, USA Today


Doug Luza
Branch Manager
NMLS # 311377
Branch NMLS # 1198991

Doug Luza

PHONE: (832) 575-2210

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).