MetroIntelligence Economic Update by P. DUFFY
2Q2022 GDP declines 0.9 percent in initial estimate
Real gross domestic product (GDP) decreased at an annual rate of 0.9 percent in the second quarter of 2022 according to the “advance” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP decreased 1.6 percent. The decrease in real GDP reflected decreases in private inventory investment, residential fixed investment, federal government spending, state and local government spending, and nonresidential fixed investment that were partly offset by increases in exports and personal consumption expenditures (PCE). Imports, which are a subtraction in the calculation of GDP, increased.
Pending home sales fall 8.6 percent in May and 20.0 percent year-on-year
Pending home sales declined 8.6% from May as escalating mortgage rates and housing prices impacted potential buyers Pending sales retreated in all four major regions, with the West experiencing the largest monthly decline. Compared to the previous year, contract signings dropped by double digits in each region as pending sales in the West were down by nearly a third. Nationally, pending home sales fell 20.0% year-on-year.
Purchase loan applications fall 1 percent from last week and 18 percent year-on-year
The Market Composite Index for mortgage applications decreased 1.8 percent on a seasonally adjusted basis from one week earlier, with purchase loans falling 1 percent (and down 18 percent year-on-year) and refinance activity falling 4 percent (and down 83 percent year-on-year). The adjustable-rate mortgage (ARM) share of activity decreased to 9.1 percent of total applications. The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.74 percent from 5.82 percent.