Loan Officer | NMLS #882792
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Posted On September 03, 2018
Markets are closed today in observance of the Labor Day holiday. In housing news, the US construction report comes out on Tuesday and the Mortgage Bankers Association (MBA) weekly mortgage application survey comes out on Wednesday. Other market moving data includes the ADP employment report.
US construction spending tracks month-to-month changes in total spending on private and public construction projects. Though residential construction specifically influences the housing industry, all construction activity triggers economic momentum through the purchase of materials and job creation. In June, construction spending declined 1.1% month-over-month, but increased 6.1% year-over-year, signaling a positive trend. Despite the monthly decline, analysts suspect construction activity is picking up, especially amidst low for-sale housing inventory.
The MBA weekly mortgage application survey shows week-to-week changes in new purchase and refinance mortgage application submissions. After falling off earlier this summer, mortgage activity started to pick back up amidst steady mortgage rates. However, for the week ending 8/24, new purchase applications declined 1.0% and refinance applications declined 3.0% for a composite decrease of 1.7%.
The ADP employment report is based on data from approximately 400,000 US businesses employing approximately 23 million US workers. The data is limited to businesses who use ADP’s payroll software but is used to review private employment trends. In July, ADP companies added 219,000 new employees, exceeding economists’ expectations. Small businesses added 52,000 jobs, medium-sized firms added 119,000 jobs, and large corporations added 48,000 jobs.
You may have heard economists and housing professionals calling current market conditions a “seller’s market,” but, most home sellers are also concurrently looking for a new home to purchase. Working with a lender that can ensure a faster mortgage transaction makes you a more attractive buyer to a seller who is also likely about to enter the home buying market. Ease of transaction and transaction time are critical in today’s competitive market.