MetroIntelligence Economic Update by P. DUFFY
Construction spending rises 1.3 percent in January and 8.2 percent year-on-year
Construction spending during January 2022 was estimated at a seasonally adjusted annual rate of $1,677.2 billion, up 1.3% from December and 8.2% year-on-year. Residential construction was at a seasonally adjusted annual rate of $829.4 billion in January, up 1.3% from December and 11.0% year-on-year. Single-family construction was up 1.2% from December and 15.4% year-on-year. Multi-family construction edged down 0.1% from December but was up 4.8% year-on-year.
February manufacturing sector index edges up 1 point to 58.6
The February Manufacturing PMI® registered 58.6 percent, an increase of 1 percentage point from the January reading of 57.6 percent. This figure indicates expansion in the overall economy for the 21st month in a row after a contraction in April and May 2020. The COVID-19 omicron variant remained an impact in February; however, there were signs of relief, with recovery expected in March.
Purchase loan apps fall 2 percent from previous week and 9 percent year-on-year
The Market Composite Index for mortgage applications decreased 0.7 percent on a seasonally adjusted basis from one week earlier, with purchase loans falling 2 percent (and down 9 percent year-on-year) and refinance activity rising 1 percent (but down 56 percent year-on-year). The average contract interest rate for conforming 30-year fixed-rate mortgages increased to 4.15 percent from 4.06 percent.