6/9/2022 – MetroIntelligence Economic Update by P. DUFFY

MetroIntelligence Economic Update by P. DUFFY

April consumer credit use up by 10.1 percent, and 19.6 percent for revolving credit

In April, consumer credit increased at a seasonally adjusted annual rate of 10.1 percent. Revolving credit (such as credit cards) increased at an annual rate of 19.6 percent, while nonrevolving credit (such as car loans and college tuition) increased at an annual rate of 7.1 percent.

https://www.federalreserve.gov/Releases/g19/current/

Purchase loan applications dip 7 percent from previous week, down 21 percent year-on-year

The Market Composite Index for mortgage applications decreased 6.5 percent on a seasonally adjusted basis from one week earlier, with purchase loans falling 7 percent (and down 21 percent year-on-year) and refinance activity falling 6 percent (and down 75 percent year-on-year). The average contract interest rate for 30-year fixed-rate mortgages increased to 5.40 percent from 5.33 percent. The adjustable-rate mortgage (ARM) share of activity decreased to 8.2 percent of total applications.

https://www.mba.org/news-and-research/newsroom/news/2022/06/08/mortgage-applications-decrease-in-latest-mba-weekly-survey

Large metro suburban single-family construction slows

Supply-chain challenges and unfavorable economic conditions in the first quarter of the year reduced the pace of single-family residential construction across all regional submarkets. The effect was most pronounced in high-cost areas such as large metro suburban counties, with growth decreasing from 18.7% in the first quarter of 2021 to 5.2% in the first quarter of 2022. Large metro core counties by contrast experienced the smallest growth reduction for that period, a 0.7 percentage point decline to 8.8%. Micro counties were the only submarket to post an increase in the growth rate from the first quarter of 2021, a 3.9 percentage point increase to 16.7%.

https://eyeonhousing.org/2022/06/large-metro-suburban-single-family-construction-slows/

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