MetroIntelligence Economic Update by P. DUFFY
June Home Purchase Sentiment Index up 9.0 points, but down 15.0 points year-on-year
The Fannie Mae Home Purchase Sentiment Index® (HPSI) increased 9.0 points in June to 76.5, building further on the prior month’s advance after approaching a survey low in April. Four of the six HPSI components increased month over month, with consumers reporting a significantly more positive view of homebuying and home-selling conditions, as well as greater optimism regarding home price appreciation. Year over year, the HPSI is down 15.0 points.
Apartment households paying full or partial rent by July 6th slips to 77.4 percent
The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker found 77.4 percent of apartment households made a full or partial rent payment by July 6 in its survey of 11.4 million units of professionally managed apartment units across the country. This is a 2.3-percentage point decrease from the share who paid rent through July 6, 2019 and compares to 80.8 percent that had paid by June 6, 2020.
Purchase loan apps fall 5 percent from previous week but up 111 percent year-on-year
The Market Composite Index increased 2.2 percent on a seasonally adjusted basis from one week earlier, with purchase loans falling 5 percent (but up 33 percent year-on-year) and refinance activity edging up 0.4 percent (and up 111 percent year-on-year). The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.26 percent from 3.29 percent.
New hires up 60.3 percent in May as separations fell 58.4 percent
Job openings increased by 8.0 percent to 5.4 million on the last business day of May, yielding a difference of 15.5 million needed jobs versus the 20.9 million people unemployed during the month. The number of hires increased by 2.4 million, or 60.3 percent, to a series high of 6.5 million, for the largest monthly increase of hires since the series began. Total separations decreased by 5.8 million, or 58.4 percent, to 4.1 million, the single largest decrease since the series began.