Mortgage Market Update 06-02-14

Construction spending picked up in April due in part to increases in home building and government construction. The Commerce Department reported that construction spending rose by a modest 0.2% in April to an annual rate of $953.5 billion, the strongest performance since March 2009. Construction spending had decreased by 0.4% in January, due to the harsh winter weather, but has picked up in recent months as the warmer weather unfolds.
The U.S. Stock markets finished with record highs on Friday as the closely watched barometer for Stocks, the S&P 500, closed at 1,923.57. The low interest rate environment that the Federal Reserve has been fostering, has been a boon for the Stock markets. The S&P 500 hit a multi-year low of 666 back on March 9, 2009 at the height of the recession, a 188% gain.
The manufacturing sector took a minor setback in May as business expansion slowed a bit. The ISM Manufacturing Index fell to 53.2 from the April reading of 54.9, but readings above 50 indicates expansion. The survey showed that 17 of the 18 sectors showed growth last month with just one said business was flat. Within the survey it showed that the employment component fell to 51.9 from 54.7 in April.