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The Bureau of Labor Statistics reported 287 thousand jobs added in June, a far cry from May’s revised total of 11 thousand, which was the lowest total for any one month in six years. While June’s lofty job increase total is good news for the economy, Fannie Mae Chief Economist Doug Duncan said it doesn’t really do anything to brighten the forecast for housing for the remainder of the year.
Duncan said, quote, There was nothing in the report to encourage housing supply enthusiasts. No increase in construction employment during the month, and the three-month moving average fell for the first time in four years. That is consistent with recent housing starts data and offers no near-term hope of housing supply growth to offset strong house price appreciation trends and related affordability constraints. Without supply growth, decreases in interest rates are translating into house price increases in the presence of employment and household formation growth. Close quote
Zillow on Friday reported a huge increase in the number of mortgage refinance requests the company has received as the U.S. mortgage market begins to feel the effects of the Brexit vote from two weeks ago. The near-historically low mortgage rates brought on by Brexit have caused a 107 percent spike in refinance applications and a 24 percent increase in purchase applications in the last two weeks, according to Zillow.
