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Construction Spending: Continued Declines

September 1, 2022
Bottom Line:   Construction spending fell again in July, led by declines in residential projects after a historic move higher in mortgage rates. Nonresidential construction finally started to recover this year and was accelerating modestly by July but remained well below trend levels after two years of declines. Residential remained a big concern, dropping over 4.5% annualized in the three months ended in July. Overall, construction shifted from a tailwind to a headwind for economic growth, with the slight recovery in nonresidential spending nowhere near enough to offset the declines in residential.
  • Total Construction for June was revised up from -1.1% to -0.53%
  • Total Construction for May was revised up from +0.06% to +0.72%
Article by Contingent Macro

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Mortgage Apps: Record Lows (08/31/22)
As the average 30-year fixed-rate mortgage pushed back over 6% last week, applications for purchases and refinancings fell sharply. The refi index hit a new 15+ year low, while the purchased index hit levels last seen in 2016....