• CMG MORTGAGE, INC. NMLS #1820
  • Cindy MacDonell
  • News
  • Market Forecast: Consumer Credit, MBA Purchase Applications, and a New President

Market Forecast: Consumer Credit, MBA Purchase Applications, and a New President

  • November 07, 2016

Mortgage rates have not moved significantly since last week with most rates standing still awaiting election results.

This week, the consumer credit report comes out on Monday and the weekly MBA mortgage index is scheduled for release on Wednesday.  Of course, the biggest impending announcement this week will be the results of Tuesday’s Presidential Election.  Markets tend to not fluctuate drastically ahead of presidential elections with investors holding off on risky moves ahead of the announcement. 

Changes in consumer credit indicate the general state of consumer financial security and predict future spending patterns. The demand for consumer credit is directly related to interest rates. In October, outstanding consumer credit was released as $25.9 Billion, up substantially from September’s numbers.  Banks are issuing 16% more credit cards than they were a year ago (July 2015-July 2016), the highest level in nine years, as reported by Equifax Inc.

The Mortgage Bankers’ Association’s purchase application index measures single-family home sales and housing construction.  Last week, applications decreased 1.2% from the previous week.  In total, October saw two weeks of declines and one week of moderate increase, we can expect similar news this week.  We expect little change from last week, keeping with the quiet trends.

Americans are heading to the polls to cast their vote on the nation’s new commander-in-chief on Election Day, Tuesday, November 8th.  Historically, the market tends to slow down ahead of a presidential election, especially with one as unprecedented as the one we face Tuesday. 

If you are unsure of where to vote, check out this helpful link

 

Sources: Mortgage News DailyHousingWire, CNBC, Boston Globe

 

Cindy MacDonell
Senior Loan Officer
NMLS # 316198
Branch NMLS # 1270689

Cindy MacDonell

PHONE: (707) 781-8185
cmacdonell@cmgfi.com

APPLY NOW
© 2016 CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender, licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; Loans made or arranged pursuant to a California Finance Lenders Law license No. 6053674. Offer of credit is subject to credit approval. For State specific licensing, visit www.cmgfi.com/licensing.php. To verify our state licenses, please visit www.nmlsconsumeraccess.com. This site is not intended to serve as a business solicitation for residents in the state of Massachusetts and New York.