Last week’s housing related news was limited to Construction Spending and Freddie Mac’s mortgage rates survey, but labor reports suggested an economic slowdown may be in the works.
Construction Spending Slips in April, Mortgage Rates Mixed
According to the Commerce Department, overall construction spending slipped in April to -1.80 percent as compared to March’s reading of +1.50 percent and May’s expected reading of +0.70 percent. Residential construction spending was 1.50 percent lower, which doesn’t help ongoing shortages of available single-family homes. Builders have repeatedly cited labor shortages and lack of developed lots as obstacles to building more homes. Year-over-year construction spending was 4.50 percent higher.
Freddie Mac reported higher rates for fixed-rate mortgages while the average rate for a 5/1 adjustable rate mortgage was one basis point lower at 1.87 percent. Rates for a 30 year fixed rate mortgage averaged two basis points higher at 3.66 percent; rates for a 15-year fixed rate mortgages were three basis points higher at 2.92 percent. Average discount points were unchanged for all loan types at 0.50 percent.
Labor Reports Indicate Slowing Jobs Market And Economy
According to the Non-farm Payrolls report for May, U.S. jobs increased at their lowest rate in five years with 38,000 new private and public sector jobs added. Temporary hiring also hit its lowest reading in seven years, which was seen as a negative as temporary jobs often transition to permanent positions.
Analysts said that May’s extremely low reading for jobs created indicates that a revision is likely. This inconsistency was supported by the national unemployment rate of 4.70 percent, but the lower jobless rate was attributed to workers leaving the labor force.
ADP’s May reading for private sector jobs rose to 173,000 jobs against expectations of 165,000 jobs and April’s reading of 268,000. This reading was further evidence that the Non-farm Payrolls report was likely inaccurate.
Last week’s new jobless claims fell to a five-week low of 267,000 as compared to expectations of 279,000 new claims and the prior week’s reading of 268,000 new claims.
What’s Ahead This Week
Economic news scheduled for this week include a speech by Federal Reserve Chair Janet Yellen on Monday; this speech could foreshadow the Fed’s decision to raise or not raise the Fed’s target federal funds rate during its FOMC meeting later this month.
Readings on job openings and consumer sentiment will be released along with weekly reports on mortgage rates and new jobless claims.
It’s often necessary to make a few small renovations before putting your home on the market, but it can be surprising to learn that summer can be a less expensive time for many common fix-ups. If you’re wondering what you should renovate in the summer months, you may want to consider a few of the following for the sake of economy.
March home prices were again dominated by the Northwest with Portland, Oregon posting a year-over-year gain of 12.30 percent followed by Seattle, Washington’s year-over-year gain of 10.80 percent.
It is common for home buyers to take steps to keep their out-of-pocket expenses to a minimum, and many will try to avoid paying for optional services for this reason. While you may not want to pay for all optional services, there are some that can be truly beneficial to you even if they are not required. After learning more about the services provided to you by a real estate attorney, you may be ready to seek out these professional legal services for your upcoming purchase.
Last week’s economic reports included new home sales, pending home sales along with weekly mortgage rates and new jobless claims.
Many people think that staging a home effectively is a matter of money, but there are easy ways to dress it up and make it shine that don’t come with a high cost. If you’re looking for some economical tips that will go a long way in making a positive impression, here are a few ways to get your home prepared.
When you’ve found the perfect home and you’re preparing for all of the final details to be sorted, there are a few important things that should not be forgotten about. As a home inspection is among the last steps in the transfer of the home, here’s why it’s very important to find the right person for the job.
The spring is the most popular time of the year when it comes to real estate, and it’s a good time for a few fix ups if you’re putting your home on the market. While you may have a lot of different things to do before you’re ready for your first showing, here are the four things to keep at the top of the list.
Last week’s economic news included the NAHB Housing Market Index, reports on housing starts, building reports and existing home sales. Minutes of the Federal Reserve’s last FOMC meeting were also released.