8/5: EconUpdate by P. Duffy
EconUpdate by P. Duffy
Purchase loan apps fall 2 percent from previous week, down 18 percent year-on-year
The Market Composite Index decreased 1.7 percent on a seasonally adjusted basis from one week earlier, with purchase loans falling 2 percent (and down 18 percent year-on-year) and refinance activity falling 2 percent (and down 3 percent year-on-year). The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 2.97 percent.
ADP: Private sector employment growth declines to 330,000 jobs in July
Private sector employment increased by 330,000 jobs in July according to the July ADP® National Employment Report, 318,000 of which were in the service sector. This is the lowest monthly rate of growth since last February, and compares with 680,000 in June and 232,000 in July of 2020. We’ll get a more comprehensive overview of the employment market on Friday, when the BLS releases their figures.
Inability to find affordably priced home again becomes primary reason active buyers could not close a deal
For two quarters recently (Q4 2020 and Q1 2021), ‘getting outbid by other offers’ was the most common reason these long-time searchers could not buy a home. But the top reason changed in the second quarter of 2021, when once again, the inability to find an affordably priced home became the primary reason (39%) active buyers couldn’t pull the trigger.