Blog posted On February 07, 2020
Mortgage rates did not move significantly this week, after touching year-long lows. Overall construction spending declined, but residential investment increased. The Mortgage Bankers Association (MBA) weekly mortgage application survey returned mixed results. The ADP employment report exceeded expectations.
Total construction spending fell 0.2% in December, to an annual rate of $1.33 trillion. November’s figure was revised slightly upward. Residential construction spending, specifically, jumped 1.4%, as strong buyer demand triggers new home construction. Spending on public projects declined 0.4%.
The weekly mortgage application survey returned mixed results for the week ending 1/31 as mortgage rates continue to plunge. New purchase mortgage application submissions declined 10.0% and refinance mortgage application submissions climbed 15.0% for a composite increase of 5.0%.
The ADP employment report showed the addition of 291,000 jobs in January, much more than expected. Large firms added 69,000 jobs, medium-sized companies added 128,000 jobs, and small businesses added 94,000 jobs. Analysts expect warm weather may have boosted hiring activity.
Last week, homeowners, specifically, took advantage of rock bottom mortgage rates with a refinance rush. Black Knight Data and Analytics estimates about 9 million homeowners could benefit from a lower mortgage rate with a refinance. Even some homeowners that purchased within the past few years could secure a lower rate with a mortgage refinance. If you have any questions about a new purchase or refinance in the coming year, let us know.