Weekly Round-Up #6

Weekly Roundup – November 5, 2021

Urgent, incisive, and actionable insights concerning NorCal CRE. Curated weekly by Sparacino Realty.

After a couple weeks of discouraging numbers and resounding “oofs,” I’m happy to announce that optimism abounds this week. Growth has slowed, but rents are still rising. Mortgage loan application volume ticked down, but the experts still believe that all signs point to healthy housing demand. Private sector employment is up and unemployment claims are down. Basically, there’s nothing too alarming to report.

Apartment List National Rent Report

I tend to track within my radius, Oakland and San Francisco, but the Apartment List National Report has a lot more to offer. The biggest takeaway from this month’s report is undoubtedly the national index increasing by 0.8 percent from September to October –– the lowest month-to-month growth rate since February. However, fear not. Even though rent growth has slowed significantly, it’s still outpacing pre-pandemic trends. Translation: rents are still rising but growth has slowed.

Mortgage Loan Application Volumes in the U.S. Drop

The volume of mortgage loan applications in the U.S. dropped down 3.3 percent on a seasonally adjusted basis over the week of 11/01. The numbers show a 4 percent decrease in the absolute, with a 4 percent drop in refinancing activity. This flickers eerily close to a two-year low. However, MBA’s Associate Joel Kan is optimistic, commenting: “Purchase activity continues to be held back by high prices and low for-sale inventory, but current applications levels still point to healthy housing demand. MBA is forecasting for a record $1.6 trillion in purchase mortgage originations this year.” (Mortgage Bankers Association)

ADP National Employment Report: Private Sector Employment Increased by 571,000 Jobs in October

Booyah. Private sector employment is up in a big way according to the October ADP® National Employment Report, who derive their data from those who are on a company’s payroll. Mark Zandi, chief economist of Moody’s Analytics, gives this read on the numbers: “The job market is revving back up as the Delta wave of the pandemic winds down. Job gains are accelerating across all industries, and especially among large companies. As long as the pandemic remains contained, more big job gains are likely in coming months.” (ADP National Employment Report PDF

Weekly Initial Unemployment Claims Decrease to 269,000

Everyone’s favorite weekend read is out: the Department of Labor’s Unemployment Insurance Weekly Claims Report. Woohoo! Just kidding. But, this week, it is actually an encouraging read. The seasonally adjusted claims for the week ending in October 30, decreased 14,000, representing the lowest level of weekly claims since the start of the pandemic in March, 2020. Read the full report here.

Federal Reserve issues FOMC statement

The Federal Reserve released a statement outlining The Committee’s commitment to using its “full range of tools” to promote maximum employment and meet price stability goals. Here’s an excerpt: “In light of the substantial further progress the economy has made toward the Committee’s goals since last December, the Committee decided to begin reducing the monthly pace of its net asset purchases by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities.” (Federal Reserve)

Past Insights

Taking a break from Commercial Real Estate Brokerage

Hi All, I dislike it when people don’t keep up on blogs.  I am an offender in my own eyes and I apologize to you, the reader if you feel the same way.  The truth is that I’ve decided to..

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US Housing Affordability Worsens to New Record Low on High Rates

Interesting article from Bloomberg about housing affordability in the US. See the link here.

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