Market News 9-5-19
Mortgage Market Update
The August ISM manufacturing index fell to 49.1%, the lowest reading in 3+ years. A reading below 50% indicates contraction in manufacturing activity. Private payrolls rose more than anticipated, according to ADP. The private sector added 195,000 jobs in August, better than the expected 149,000 increase. The economy grew at a modest pace in July and August. A majority of businesses report being optimistic, and consumer spending increased solidly.
Construction spending grew slightly in July, by 0.1% over the revised June estimate. Residential construction spending rose 0.6% from the previous month. Millennials are jumping into homeownership in larger numbers, driving up home prices as inventory remains an issue, according to a recent CoreLogic report. Home inventory for sale at the end of July was nearly 2% lower than a year ago. In July there was a 4.2-month supply of homes for sale, according to NAR.