Pending home sales decline

The Pending Home Sales Index decreased 1.3 percent in April, and remains 2.1 percent below the level one year ago, having declined on an annualized basis for the fourth straight month, according to a media release from the National Association of Home Builders.

The index remained unchanged in the Northeast, but declined 0.4 percent in the West, 1 percent in the South and 3.2 percent in the Midwest. Year-over-year, the index increased 2.7 percent in the South, but declined by 4.6 percent in the West, 5.1 percent in the Midwest and 7 percent in the Northeast, the release states.

Existing sales fell last month, and the combination of a tight inventory, rising mortgage rates and higher prices suggest more of the same this spring. New home sales also declined last month, according to the release.

Construction fuels May employment gain

Monthly employment data released by the Bureau of Labor Statistics indicates that the number of construction jobs rose by 25,000 in May, after the 21,000 increase in April, according to a media release from the National Association of Home Builders.

Residential construction employment rose to 2.81 million in May, broken down as 791,000 builders and 2 million residential specialty trade contractors. The 6-month moving average of job gains for residential construction is 13,183 a month. Over the last 12 months, home builders and remodelers have added 132,300 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained 827,400 positions, the release states.

In May, the unemployment rate for construction workers decreased sharply to 5 percent on a seasonally adjusted basis, after a 6.5 percent rate in April, according to the release.