EconUpdate by P. Duffy
Purchase loan apps dip 3 percent from previous week, but up 24 percent year-on-year
What does this mean? Low inventory continues to constrain purchase apps, but demand remains strong.
The Market Composite Index for mortgage apps decreased 0.9 percent on a seasonally adjusted basis from one week earlier, with purchase loans falling 3 percent (but up 24 percent year-on-year) and refinance activity edging up 0.1 percent (but down 17 percent year-on-year). The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) increased to 3.18 percent from 3.17 percent.
Service sector index slips 1 point to 62.7 in April, but still well into growth mode
What does this mean? Supply chain challenges are also impacting the service sector as the economy reopens.
The Services PMI® registered 62.7 percent in April, which is 1 percentage point lower than last month’s all-time high of 63.7 percent. The April reading indicates the 11th straight month of growth for the services sector. Respondents’ comments indicate that pent-up demand is continuing. Production-capacity constraints, material shortages, weather and challenges in logistics and human resources continue to affect deliveries, which has resulted in a reduction of inventories.
ADP: Private sector job growth rises another 31 percent to 742,000 in April
What does this mean? Look for another very strong jobs report on Friday from the BLS.
Private sector employment increased by 742,000 jobs from March to April according to the April ADP® National Employment Report, of which 636,000 (86 percent) were in services and 106,000 (14 percent) were in goods-producing industries. This rate of growth compares to 565,000 the previous month, and is the highest posted since September 2020.