Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights mortgage purchase applications and the ISM non-manufacturing index.
- The Purchase index gained 0.3 from the previous week, but was 36.9 percent lower compared with a year ago. Refinancing activity accounted for most of the increase, advancing 6.0 percent from the prior week. Mortgage rates on a 30-year fixed mortgage declined from 4.80 percent to 4.73 percent during the week.
- Based on the April ADP National Employment report, nonfarm private business employment increased by 179,000 jobs between March and April.
- The gain in employment figures is positive, but remains moderate.
- Continuing a 17 month upward trend, business activity in service industries remained expansionary in April, although at a slower rate than March.
- The Institute for Supply Management Non-Manufacturing Index reached 52.8 in April, a 4.5 point decline from March’s 57.3 percent. A level of 50 or higher indicates expansion in the services sector.
- The Business Activity index declined 6 points to 53.7 percent in April, while the Employment Index slid 1.8 points to 51.9 percent. The New Orders Index also decreased to 52.7 percent, a 11.4-point loss.