Seasonally adjusted “initial” unemployment claims increased by 11,000 to 276,000 claims while seasonally adjusted "continued" unemployment claims decreased by 7,000 to 2.73 million resulting in an “insured” unemployment rate of 1.6%.
Thursday, March 31, 2016
Weekly Unemployment Claims: Initial and Continued March 31 2016
Today’s jobless claims report showed an increase to initial unemployment claims and a decrease to continued unemployment claims as seasonally adjusted initial claims remained below the 300K level.
Seasonally adjusted “initial” unemployment claims increased by 11,000 to 276,000 claims while seasonally adjusted "continued" unemployment claims decreased by 7,000 to 2.73 million resulting in an “insured” unemployment rate of 1.6%.
Seasonally adjusted “initial” unemployment claims increased by 11,000 to 276,000 claims while seasonally adjusted "continued" unemployment claims decreased by 7,000 to 2.73 million resulting in an “insured” unemployment rate of 1.6%.
ADP Manufacturing Meltdown
Looking a bit deeper at yesterday's ADP Employment Report, one finds yet another clear signal that the current expansion may have topped-out making recession as a distinct possibility in 2016.
The ADP Total Manufacturing Payrolls series has continued to remain weak but still rose 0.10% on an annual basis.
Keep in mind that while manufacturing is clearly also showing strong secular weakness, this is a very sensitive series that should not be ignored.
Also, a revitalization of the nation's manufacturing sector was a important goal of the current administration's economic policy and a particularly key focus of 2009's American Recovery and Reinvestment Act.
The ADP Total Manufacturing Payrolls series has continued to remain weak but still rose 0.10% on an annual basis.
Keep in mind that while manufacturing is clearly also showing strong secular weakness, this is a very sensitive series that should not be ignored.
Also, a revitalization of the nation's manufacturing sector was a important goal of the current administration's economic policy and a particularly key focus of 2009's American Recovery and Reinvestment Act.
ADP National Employment Report: March 2016
Yesterday, private staffing and business services firm ADP released the latest installment of their National Employment Report indicating that the situation for private employment in the U.S. improved in March as private employers added 200,000 jobs in the month bringing the total employment level 2.08% above the level seen in March 2015.
Look for Friday’s BLS Employment Situation Report to likely show, more or less, similar trends.
Look for Friday’s BLS Employment Situation Report to likely show, more or less, similar trends.
Reading Rates: MBA Application Survey – March 30 2016
The Mortgage Bankers Association (MBA) publishes the results of a weekly applications survey that covers roughly 50 percent of all residential mortgage originations and tracks the average interest rate for 30 year and 15 year fixed rate mortgages as well as the volume of both purchase and refinance applications.
The purchase application index has been highlighted as a particularly important data series as it very broadly captures the demand side of residential real estate for both new and existing home purchases.
The latest data is showing that the average rate for a 30 year fixed rate mortgage (from FHA and conforming GSE data) went unchanged at 3.84% since last week while the purchase application volume increased 2% and the refinance application volume decreased 3% over the same period.
The following chart shows the average interest rate for 30 year and 15 year fixed rate mortgages since 2006 as well as the purchase, refinance and composite loan volumes (click for larger dynamic full-screen version).
The purchase application index has been highlighted as a particularly important data series as it very broadly captures the demand side of residential real estate for both new and existing home purchases.
The latest data is showing that the average rate for a 30 year fixed rate mortgage (from FHA and conforming GSE data) went unchanged at 3.84% since last week while the purchase application volume increased 2% and the refinance application volume decreased 3% over the same period.
The following chart shows the average interest rate for 30 year and 15 year fixed rate mortgages since 2006 as well as the purchase, refinance and composite loan volumes (click for larger dynamic full-screen version).
S&P/Case-Shiller: January 2016
On an annual basis, the National index increased 5.43% above the level seen in January 2015 while the Composite-10 city index increased 5.10% and the Composite-20 city index increased 5.75% over the same period.
On a peak basis, all three indices still show significant peak declines slumping 4.96% for the National index, -12.97% for the Composite-10 city index and -11.60% for the Composite-20 city index on a peak comparison basis.
Monday, March 28, 2016
The Federal Reserve Bank of Dallas Texas Manufacturing Outlook Survey: March 2016
Today, the Federal Reserve Bank of Dallas released their latest read on manufacturing in their region indicating that assessments of manufacturing activity remained in contraction in March with the current general business activity index improving slightly to a still recessionary level of -13.6 while the future general business activity index improved to a weak level of 6.1.
These results are an indication (consistent with other regional and national manufacturing activity data-points) that the U.S. manufacturing sector has clearly slumped into recessionary levels as of late and provides yet another likely harbinger of what is to come in 2016 for the general economy.
Pending Home Sales: February 2016
Today, the National Association of Realtors (NAR) released their Pending Home Sales Report for February showing that pending home sales increased notably with the seasonally adjusted national index rising 3.5% from January to stand 0.7% above the level seen in February 2015.
The following chart shows the seasonally adjusted national pending home sales index along with the percent change on a year-over-year basis as well as the percent change from the peak set in 2005 (click for larger version).
The following chart shows the seasonally adjusted national pending home sales index along with the percent change on a year-over-year basis as well as the percent change from the peak set in 2005 (click for larger version).
Wednesday, March 23, 2016
New Home Sales: February 2016
Today, the U.S. Census Department released its monthly New Residential Home Sales Report for February showing sales increased 2.0% from January but still remained 6.1% below the level seen in February 2015 and remaining near an historically low level with 512K SAAR units.
The monthly supply remained flat at 5.6 months while the median selling price increased 2.55% and the average selling price declined 1.97% from the year ago level.
The following chart show the extent of sales decline to date (click for full-larger version).
The monthly supply remained flat at 5.6 months while the median selling price increased 2.55% and the average selling price declined 1.97% from the year ago level.
The following chart show the extent of sales decline to date (click for full-larger version).
Reading Rates: MBA Application Survey – March 23 2016
The Mortgage Bankers Association (MBA) publishes the results of a weekly applications survey that covers roughly 50 percent of all residential mortgage originations and tracks the average interest rate for 30 year and 15 year fixed rate mortgages as well as the volume of both purchase and refinance applications.
The purchase application index has been highlighted as a particularly important data series as it very broadly captures the demand side of residential real estate for both new and existing home purchases.
The latest data is showing that the average rate for a 30 year fixed rate mortgage (from FHA and conforming GSE data) decreased 2 basis points to 3.84% since last week while the purchase application volume declined 1% and the refinance application volume decreased 5% over the same period.
The following chart shows the average interest rate for 30 year and 15 year fixed rate mortgages since 2006 as well as the purchase, refinance and composite loan volumes (click for larger dynamic full-screen version).
The purchase application index has been highlighted as a particularly important data series as it very broadly captures the demand side of residential real estate for both new and existing home purchases.
The latest data is showing that the average rate for a 30 year fixed rate mortgage (from FHA and conforming GSE data) decreased 2 basis points to 3.84% since last week while the purchase application volume declined 1% and the refinance application volume decreased 5% over the same period.
The following chart shows the average interest rate for 30 year and 15 year fixed rate mortgages since 2006 as well as the purchase, refinance and composite loan volumes (click for larger dynamic full-screen version).
Tuesday, March 22, 2016
The Richmond Fed Survey of Manufacturing Activity: March 2016
Today, the Federal Reserve Bank of Richmond released their Survey of Manufacturing Activity for March showing that the composite index, the broadest measure of manufacturing activity, improved notably rising to a level of 22 from a level of -4 the prior month.
The most notable component measures also showed similar results with Shipments rising to 27, New Orders rising to 24 and Backlog of Orders improving to 1.
FHFA Monthly Home Prices: January 2016
Today, the Federal Housing Finance Agency (FHFA) released the latest results of their monthly house price index (HPI) showing that in January, nationally, home prices increased 0.54% from December rising 6.01% above the level seen in January 2015.
The FHFA monthly HPI are formulated from home purchase information collected from mortgages that have been sold to or guaranteed by Fannie Mae and Freddie Mac.
The FHFA monthly HPI are formulated from home purchase information collected from mortgages that have been sold to or guaranteed by Fannie Mae and Freddie Mac.
Existing Home Sales Report: February 2016
Yesterday, the National Association of Realtors (NAR) released their Existing Home Sales Report for February showing a notable decline with total home sales falling 7.1% since January but remaining 2.2% above the level seen a year earlier.
Single family home sales also slumped with sales falling a notable 7.2% from January but still rising 2.0% above the level seen a year earlier while the median selling price increased 2.3% over the same period.
Inventory of single family homes increased, rising 1.9% from January to 1.65 million units, falling 0.6% below the level seen in February 2015 which, along with the sales pace, resulted in a notably tight monthly supply of 4.4 months.
The following charts (click for full-screen dynamic version) shows national existing single family home sales, median home prices, inventory and months of supply.
Single family home sales also slumped with sales falling a notable 7.2% from January but still rising 2.0% above the level seen a year earlier while the median selling price increased 2.3% over the same period.
Inventory of single family homes increased, rising 1.9% from January to 1.65 million units, falling 0.6% below the level seen in February 2015 which, along with the sales pace, resulted in a notably tight monthly supply of 4.4 months.
The following charts (click for full-screen dynamic version) shows national existing single family home sales, median home prices, inventory and months of supply.
The Chicago Fed National Activity Index: February 2016
The latest release of the Chicago Federal Reserve National Activity Index (CFNAI) indicated that the national economic worsened in February with the index falling to a contraction level of -0.29 from a level of 0.41 a month earlier while the three month moving average improved to a level of -0.07.
February's weakness came as a direct result of declines to every component measure of the CFNAI reversing last months improvements and apparently reflecting continued general economic weakness.
The CFNAI is a weighted average of 85 indicators of national economic activity collected into four overall categories of “production and income”, “employment, unemployment and income”, “personal consumption and housing” and “sales, orders and inventories”.
The Chicago Fed regards a value of zero for the total index as indicating that the national economy is expanding at its historical trend rate while a negative value indicates below average growth.
A value at or below -0.70 for the three month moving average of the national activity index (CFNAI-MA3) indicates that the national economy has either just entered or continues in recession.
February's weakness came as a direct result of declines to every component measure of the CFNAI reversing last months improvements and apparently reflecting continued general economic weakness.
The CFNAI is a weighted average of 85 indicators of national economic activity collected into four overall categories of “production and income”, “employment, unemployment and income”, “personal consumption and housing” and “sales, orders and inventories”.
The Chicago Fed regards a value of zero for the total index as indicating that the national economy is expanding at its historical trend rate while a negative value indicates below average growth.
A value at or below -0.70 for the three month moving average of the national activity index (CFNAI-MA3) indicates that the national economy has either just entered or continues in recession.
Thursday, March 17, 2016
The Philly Fed Business Outlook Survey: March 2016
The March release of the Federal Reserve Bank of Philadelphia Business Outlook Survey (BOS) indicated improvement in the regions manufacturing activity with the current activity index increasing to a level of 12.4 while assessments the future activity also improved to a level of 28.8.
The above chart shows the current and future activity indexes both with their corresponding 3-month moving averages. The red line marks the threshold between contraction and expansion for these diffusion indexes.
Weekly Unemployment Claims: Initial and Continued March 17 2016
Today’s jobless claims report showed an increase to both initial and continued unemployment claims as seasonally adjusted initial claims remained below the 300K level.
Seasonally adjusted “initial” unemployment claims increased by 7,000 to 265,000 claims while seasonally adjusted "continued" unemployment claims increased by 8,000 to 2.235 million resulting in an “insured” unemployment rate of 1.6%.
Seasonally adjusted “initial” unemployment claims increased by 7,000 to 265,000 claims while seasonally adjusted "continued" unemployment claims increased by 8,000 to 2.235 million resulting in an “insured” unemployment rate of 1.6%.
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