Tag Archives: Jobs

According to Freddie Mac, the average rate on a 30-year fixed-rate mortgage (FRM) was 4.20 percent (0.6 point) for the week ending June 12, an increase of 6 basis points from last week's report. Last year, the 30-year FRM hovered just below 4.0 percent. The increase followed last week's release of the May jobs report, which showed payrolls performing more or less as expected.

Measuring new homebuilding against employment numbers—which only recently recovered from their recessionary decline—the National Association of Realtors finds that historically, there is one new home built for every 1.5 jobs added to the economy. As of the first quarter, 32 states and the District of Columbia are above that ratio, meaning job growth has far outpaced new construction over the past three years.

Among the millions of households who moved between 2012 and 2013, a study finds the most important reason was to find a new or better home. According to the Census Bureau, 11.7 percent of surveyed participants moved in the year, with 48 percent moving for housing reasons compared to family or employment. All told, 17.2 million gave a housing-related reason for moving.

After surpassing expectations in April, the labor market performed slightly better than anticipated in May, according to numbers released Friday by the Department of Labor. According to the government, the economy added 217,000 new jobs last month, beating out a consensus forecast of 213,000 among economists surveyed by Econoday. The gain—a retreat from April's downwardly revised estimate of 282,000 jobs added—left the national unemployment rate unchanged at 6.3 percent.

In contrast to a release earlier in the week showing an increase in consumer confidence, the University of Michigan's Index of Consumer Sentiment retreated in May as Americans expressed little hope for income growth. The index, released monthly by UMich and Thomson Reuters, fell back to 81.9 from April's final level of 84.1 and May 2013's 84.5.

Freddie Mac's Multi-Indicator Market Index (MiMi), a gauge of housing stability, slid up just 0.03 points in its latest reading to -3.06, indicating the market is still on the weak side of the spectrum. Compared to last year, the MiMi has improved by 0.66 points. However, trends are less favorable now than they were at that time, said Frank Nothaft, chief economist at Freddie Mac.

After dipping in April, the Conference Board's Consumer Confidence Index saw modest improvement in May as optimism for the job market grew. The index rebounded to 83.0 in the latest reading, up from a downwardly revised 81.7 in April, the group reported Tuesday.

An index measuring leading economic indicators in the United States posted its third straight increase in April, suggesting economic growth might be ready to take off in the coming months following a weak first quarter. The Conference Board's Leading Economic Index, a gauge of the near-term economic outlook, increased 0.4 percent last month to a reading of 101.4.

Despite many beginning-of-the-year predictions about spring growth in the housing market falling flat, and despite a still chugging economy that changes its mind quarter-to-quarter, economists at the National Association of Realtors and other industry groups expect an uptick in the economy and housing market through next year. The key to NAR's optimism, as expressed by the organization's chief economist, Lawrence Yun, last week, is a hefty pent-up demand for houses coupled with expectations of job growth—which itself has been more feeble than anticipated.

Although rising rents and tight inventories have led to a surge in new construction in San Francisco, the new supply is barely able to keep pace with demand, creating challenges in the region, says Wells Fargo's Economics Group. "Multi-family permits, which include both apartments and condominiums, surged 30.4 percent in Santa Clara County during 2013 and have eclipsed previous highs for this market," the group said. Single-family home building is rebounding, but only "slowly and off exceptionally low levels."