• Shelly Roark
  • News
  • Market Recap: Construction Spending Up, New Purchase Apps Improve, ADP Employment Grows

Market Recap: Construction Spending Up, New Purchase Apps Improve, ADP Employment Grows

  • October 06, 2017

Mortgage rates held steady this week.  Construction spending improved after the previous month’s declines.  New purchase applications increased, but refinance applications declined.  The ADP employment report was not hurt greatly by Hurricanes Harvey and Irma, but still trended downward.

US construction spending tracks the total amount spent on private and public construction projects.  Housing focuses on residential construction spending, but all construction activity triggers economic momentum through the purchase of materials and job creation.  In August, US construction spending improved by 0.5%, after two months of declines.  Damage from Hurricanes Harvey and Irma is likely a contributing factor. 

The Mortgage Bankers Association (MBA) releases a weekly survey of new purchase and refinance applications.  For the last week of September, new purchase applications improved 1.0% and refinance applications declined 2.0% for a composite decrease of -0.4%.  Mortgage application data had been skewed in recent weeks due to delays related to Hurricanes Harvey and Irma. 

The ADP employment report is based on a survey of data from 400,000 privately-owned companies employing approximately 23 million people.  Hurricanes Harvey and Irma have been impacting employment data with sharp increases in unemployment claims and delays in reporting from Texas and Florida.  In September, the ADP reported the addition of 135,000 jobs, down from August’s addition of 237,000 jobs. 

Construction and jobs data continues to be distorted due to recovery from Hurricanes Harvey and Irma.  As the Southeast, particularly Florida and Texas, continue to clean up and rebuild, construction spending is expected to increase and jobs-related reports are likely to normalize. 


Sources: Bloomberg, MarketWatch, Mortgage News Daily, Reuters

Shelly Roark

NMLS # 207714

Shelly Roark

PHONE: 512-470-4808

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).