6/10: EconUpdate by P. Duffy

EconUpdate by P. Duffy

Purchase loan apps edge up 0.3 percent from previous week, but down 24 percent year-on-year

What does this mean?  Low inventory and rising prices are beginning to impact year-on-year sales activity.

The Market Composite Index for mortgage applications decreased 3.1 percent on a seasonally adjusted basis from one week earlier, with purchase loans edging up 0.3 percent (and down 24 percent year-on-year) and refinance activity falling 5 percent (and down 27 percent year-on-year).


April job openings rise 12 percent to series high of 9.3 million as economy re-opens

What does this mean?  Employers are contending with competition for labor as workers quit more jobs looking for better pay and conditions.

The number of job openings reached a series high of 9.3 million on the last business day of April, up 12 percent from March.  The quits rate rose nearly 11 percent to approach 4.0 million, while separations (including fires) rose 6 percent to 5.8 million.

Meanwhile, the hires rate squeaked up only 1.1 percent to 6.1 million. Due to more open jobs, the ratio of unemployed to open positions fell 9.8 percent to 1.06.


Small Business Optimism Index falls 0.2 points in May as 48 percent of owners report unfilled job openings

What does this mean? Frustration with finding qualified workers has small business owners concerned about the next few months.

The NFIB Small Business Optimism Index fell 0.2 points in May to 99.6. May saw a slight pause in the recovery of small business optimism after steadily increasing each month in 2021. As reported in NFIB’s monthly jobs report, a record-high 48% of owners reported unfilled job openings. Job creation plans over the next three months rose to a net 27%, up six points.  Owners expecting better business conditions over the next six months fell 11 points to a net negative 26%.