Washington Weekly Update - March 6, 2017

March 03, 2017

March 6, 2017

Week Ahead: Jobs, Jobs, Jobs

It’s all about JOBS for scheduled data in the week ahead culminating on Friday with the Big Kahuna – the February Jobs Report — and there are clearly correlations between positive JOBS numbers and CRE.

Here’s the way it shapes up:

Monday

Situs Keeps Jobs in Small Town USA: Tune in at 11 PM ET as Situs Executive Managing Director Steven Bean reveals how other companies can follow suit — on the Jim Bohannon Radio Show.  

Wednesday

ADP Employment Report   8:15 AM ET

Thursday

Friday

February Jobs Report 8:30 AM ET

Have a prosperous week ahead.

Collingwood in the News

The Collingwood Group’s executive team commented on the Senate’s decision to confirm Dr. Ben Carson as Secretary of HUD. Read the article here!

Market Reports

Results of Freddie Mac’s Primary Mortgage Market Survey (PMMS) show mortgage rates decreased last week. The 30-year fixed-rate mortgage (FRM) averaged 4.10 percent for the week ending March 2nd. This time last year, the FRM averaged 3.64 percent. The 15-year FRM averaged 3.32 percent for the week. Year-over-year, the 15-year FRM averaged 2.94 percent.

The National Association of Realtors (NAR) Pending Home Sales Index (PHSI) decreased in January. The PHSI decreased 2.8 percent to 106.4 from an upwardly revised 109.5 in December. Existing-home sales are forecast to be around 5.57 million this year, an increase of 2.2 percent from 2016.

Mortgage applications increased during the week ending February 24th, according to the Mortgage Bankers Association (MBA).  The Weekly Mortgage Applications Survey saw a 2 percent decrease in total mortgage applications.  The Refinance Index decreased 1 percent and the unadjusted Purchase Index increased 2 percent.  The refinance share of total mortgage applications decreased to 46.2 percent last week.

The Federal Housing Finance Agency (FHFA) Index shows mortgage rates increased in January. The average interest rate on all mortgage loans was 4.17 percent, up 26 basis points from 3.91 in December. The average interest rate on conventional, 30-year, fixed-rate mortgages of $424,100 or less was 4.37 percent, up 29 basis points from 4.08 in December.

The US Department of Labor announced last week that initial unemployment insurance claims  decreased from the previous week ending February 25, 2016.  The four-week moving average was 223,000 a decrease from last week’s average.  The insured unemployment rate was 1.5 percent for the week ending February 18, unchanged from the previous week’s unrevised rate.

The S&P CoreLogic Case-Shiller Home Price Indices were reported last week. The 20-city composite home price index level stands at 192.61, a monthly increase of 0.32 percent. The 10-city composite home price index level stands at 206.45, 0.33 percent increase month over month. The national home price index stands at 185.54, a 0.21 percent increase month over month.

The U.S. Department of Commerce, Bureau of Economic Analysis (BEA) released National Income and Product Accounts Gross Domestic Product for the Q4 2016. Real gross domestic product increased at an annual rate of 1.9 percent in the fourth quarter. In the third quarter, real GDP increased 3.5 percent.

The BEA additionally released Personal Income and Outlays for January 2017. Personal income increased $63 billion in January. Disposable personal income (DPI) increased $40.1 billion and personal consumption expenditures (PCE) increased $22.2 billion. Real DPI decreased 0.2 percent in January and Real PCE decreased 0.3 percent. The PCE price index increased 0.4 percent.

The ADP Research Institute reported private sector employment increased by 246,000 jobs in January. Small businesses saw an increase of 62,000 in January. Mid-sized businesses saw an increase of 102,000 jobs, and large businesses saw an increase of 83,000 jobs.