Economist's Commentary: September 3, 2008

Quick Take on the Economy: September 3, 2008

By Ken Fears, Manager, Regional Economics

New orders for manufactured goods rose 1.3%, its 5th consecutive increase and its highest level since 1992. Shipments and inventories also rose, 2.1% and 0.5%, respectively. Unfilled orders were up 0.7%.

The purchase portion of the mortgage applications index surged 10.5%, from 315.90 to 349.2 this past week. The bulk of the increase came from the Government Purchase Index (largely FHA) increased 19.9 percent, while the Conventional Purchase Index increased 6.1 percent.
This week's increase is the third consecutive.

Demand for manufactured goods from U.S. producers appears to be on the rise. This demand should help to boost economic production going forward. More production means more jobs, the ultimate driver of home sales.
After a slow spring, sales are on the increase. The rising trend in mortgage applications suggests that buyers are shaking off their funk and looking to close on new purchases, if only at a tepid pace.
Positive economic and housing news is starting to trickle in.

This is one in a series of commentaries by the Research staff of the National Association of REALTORS®. Read more commentaries >

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