Mortgage rates again fall below 3%

WASHINGTON – Mortgage rates declined this week, with the key 30-year loan slipping back below the 3% mark as the economic recovery from the pandemic recession remains robust.

Mortgage buyer Freddie Mac reported Thursday that the average for the 30-year home loan eased to 2.98% from 3.02% last week. By contrast, the rate stood at 3.07% a year ago.

The rate for a 15-year loan, a popular option among homeowners refinancing their mortgages, fell to 2.26% from 2.34% last week. Mortgage rates are widely expected to gradually rise in the second half of the year that began Thursday.

The government reported that the number of Americans seeking unemployment benefits fell again last week to the lowest level since the pandemic struck last year, further evidence that the job market and the broader economy are rebounding rapidly from the coronavirus recession.

Port operator purchases American logistics firm

DUBAI, United Arab Emirates – One of the world’s largest port operators, DP World, said Thursday it has acquired an American logistics firm in a $1.2 billion deal, the latest investment as the maritime company pushes to expand farther afield.

Dubai-based DP World said its purchase of global logistics provider Syncreon Holdings is expected to close later this year. The company plans to fund the acquisition from existing resources so as not to take on more debt.

The move comes after the port operator posted a 29% drop in 2020 profits as the coronavirus pandemic froze global supply chains and upended trade flows. The company delisted from the stock exchange and returned to full state-ownership last year.

Syncreon operates supply chains for the automotive and technology industries, managing warehouses and fulfillment centers for packing, shipping and delivering across 19 countries.

Construction spending falls 0.3% amid supply issues

WASHINGTON – U.S. construction spending fell 0.3% in May. Growth in housing, the economy’s standout performer, slowed while activity in areas most directly impacted by the pandemic showed further weakness.

The Commerce Department reported Thursday that the May decline followed a slight 0.1% rise in April and left overall construction spending up 7.5% from a year ago.

Housing construction, which has been a driving force for the economy during the pandemic, posted a tiny 0.2% gain in May as single-family home construction rose 0.8% while apartments and other multifamily construction was flat. Over the past year, housing construction is up 28.7% with single-family construction up a sizzling 46.1%.

Nonresidential construction activity fell 1.1% in May with hotel and motel construction and the category that covers shopping centers, two areas heavily affected by the pandemic shutdowns, both falling. Over the past year, nonresidential construction is down 5.8% while the hotel and motel category is down 23.2%.

Spending on government projects dipped a slight 0.2% in May and is down 8.7% over the past year, reflecting the squeeze many levels of government have felt from falling tax revenues

Nancy Vanden Houten, an economist with Oxford Economics, said she believed the big gap between home building and nonresidential construction would start to narrow “as a recovery in private nonresidential investment takes hold as the recovery accelerates.”

From wire reportsShe said that supply chain constraints for lumber and other building materials may dampen growth in both residential and nonresidential spending for a time. But she said the recent plunge in lumber prices after a sharp runup in prices should ease cost pressures.

The various changes in May left overall construction spending at a seasonally adjusted annual rate of $1.545 trillion.