Market Update: Rates Rise; Case-Shiller Home Price Index and Construction Spending Coming Up This Week

Blog posted On August 29, 2022

Last week, mortgage rates trended higher after Federal Reserve Chairman Jerome Powell gave a short statement at the Jackson Hole Symposium. Additionally, the recent rise in rates this month are likely a larger correction to the fast downward trends we saw in July.

This week the Case-Shiller home price index is scheduled for release on Tuesday morning and U.S. construction spending is scheduled for release Thursday morning.

The S&P Case-Shiller home price index tracks changes in the value of homes involved in two or more sales transactions across 20 major metropolitan areas throughout the country.  Though the data lags by a month, it is still used to gauge home price appreciation trends. Home price appreciation slowed in May, up 20.5% year-over-year rather than the 21.2% annual gain in April. Month-over-month, home prices climbed 1.3% -- a decrease from April’s 1.8% monthly gain.

The U.S. construction spending report tracks total spending on private and public construction projects. In June, total construction spending was at a seasonally adjusted annual rate of 1.76 trillion, a 1.6% decline from May. As interest rates have increased, construction has noticeably tried to reduce spending.

Reach out to us if you’d like to learn more about the current market updates and mortgage rates.

Sources: Bloomberg, Census, Mortgage News Daily, Mortgage News Daily, Mortgage News Daily, S&P Global, S&P Global