The report that everyone has been waiting for all week is the employment data released by the Department of Labor on Friday morning. This report comes on the heels ofThursday’s optimistic ADP Employment Report, which estimated an increase in private payrolls at a healthy 204,000.
However, the Department of Labor announced that only 142,000 jobs were added in the month of August. This is the lowest increase all year. Within minutes of the employment announcement the stock market futures tanked by over 60 points.
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Outside of the employment data, there has been very little market news for investors to trade on. For the first 4 days of the week, the stock market has ended almost exactly, where it started. Other than the Labor Department’s Friday employment report, the three biggest reports for the week were on manufacturing, construction spending and jobless claims.
The first report was ISM manufacturing report, which measures the opinions of 300 purchasing managers nationwide about the general direction of production, new orders, order backlogs, and their own inventories. The most recent survey shows optimism for future manufacturing growth to be very strong. New orders for the month of August showed exceptional growth over an already strong reading in July.
Santa Clarita Real Estate News and Updates
Construction spending for the month of July showed a broad-based gain. Spending rebounded 1.8 percent after a drop in June of 0.9 percent. The increase in spending was broad and occurred in all areas of construction. July’s increase in spending was led by the public sector which jumped 3.0 percent. Private nonresidential spending rose 2.1 percent. Finally private residential outlays for construction spending rose 0.7 percent.
First time jobless claims have been maintaining their improvement over the last few weeks by remaining right in the 300K region. When claims hold steady in this area, that is considered healthy towards economic and employment sector stability. However, claims and jobs being added are two different measurements as we can see by the difference between jobless claims and new jobs created.
The only real news in for the real estate market for the week is the Mortgage Bankers Association loan application report. For the week ending August 29th the MBA reported that applications for purchases and refinances were down 2.0 percent and up 1.0 percent respectively. The rather stagnant move in purchase applications for this time of year is not unexpected. With children returning back to school, and summer vacations coming to an end, decisions for home purchases are typically slow at the end of August.
Do you have a news tip? Call us at (661) 298-1220, or drop us a line at community@hometownstation.com.
Next week has very few market moving economic reports:
- Wednesday September 10th – MBA Applications
- Thursday September 11th – First Time Jobless Claims
- Friday September 12th – Retail Sales and Consumer Sentiment
As your mortgage professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can 661-505-4300
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Source: Santa Clarita News
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