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 discusses mortgage purchase applications and ADP employment figures.

  • The number of people applying for mortgages to buy a home rose in the past week. The figure has now risen in the 5 of the past 6 weeks and is higher by 27 percent from a cyclical low of 6 weeks ago.
  • The upward trend is encouraging, as this data should be an early indication about upcoming home sales. However, the mortgage data has not trended in the same direction as home sales in more recent months. The prevalence of all-cash home buying, particularly by investors, is not getting captured in the mortgage data.
  • In Separate data news, a company that processes paychecks for many of the private companies in the U.S. indicated another monthly increase in employment. In March, the ADP reported that 209,000 jobs were created on net.
  • Note that the official employment figures are released on Friday by the Bureau of Labor Statistics, and the BLS has a larger sample and includes government employment. Based on the recent trend of job cuts at state and local governments, overall job gains are likely to be somewhat lower.
  • Overall, today’s data is consistent with an improving economy. More jobs will mean more home sales down the line. Commercial real estate will also benefit from increased leasing and sales transaction. The uptick in mortgage applications is also encouraging.

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