Well I hope everyone enjoyed the long weekend and had a safe 4th of July. Because of the holiday, last week was a little slow for real estate news. However there were several stories you need to know about:
Construction Spending Up
We got some good news for both the economy and real estate last week when the Department of Commerce reported that construction spending increased by 0.50% in May. They also said that residential construction rose 1.2%. I wonder if the increase in residential construction will help the low inventory of homes? Either way it is great news.
Home Prices Up:
Yet another report of rising home prices! Last week CoreLogic released their report on US home prices for the month of May 2013. They said that home prices rose 12.2% compared to back in May 2012. Now as good as this news is, I have to the party pooper and remind you that US home prices are still about 20% below their peak in 2006.
I hate that many of the government’s reports on unemployment are often twisted to make things sound better than they really are. So when ADP reported that the number of private-sector jobs added in June was the biggest increase in four months, we should all be happy.
I covered the average mortgage rates on Friday but to recap:
- Freddie Mac said rates decreased
- MBA said that rates increased
More About Jobs:
On Friday, we had what was probably the biggest news story for real estate and the economy last week. The Department of Labor released their latest job numbers. While there were more jobs added, the unemployment rate did not change and is still way too high at 7.6%.
The Fed has said that if unemployment goes below 6.50% they will start tinkering with the current QE program. The recent rapid increase in mortgage rates was because of the Fed just mentioning that they might cut back on QE.
Stuff You & I Should Watch This Week
Well, I am sure everyone and their brother is going to be all over the minutes from the recent FOMC meeting when they are released on Wednesday. Hopefully, the minutes won’t cause another extreme spike in mortgage rates.