• CMG MORTGAGE, INC. NMLS #1820
  • Doug Luza
  • News
  • Market Recap: More Job Openings, Mortgage Apps Jump, Consumer Borrowing Slows

Market Recap: More Job Openings, Mortgage Apps Jump, Consumer Borrowing Slows

  • June 08, 2018

Mortgage rates did not move significantly this week, leveling off this month after climbing in May.  The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) showed recorded growth in job openings.  Both new purchase and refinance applications turned around after several weeks of declines.  Consumer credit growth was modest. 

Job openings increased in April, to a level of 6.698 million, marking the best figure in the past 18 years.  Durable-goods manufacturing jobs and information sector jobs saw increases, but finance and insurance openings decreased.  The quits rate was unchanged at 2.3%.  Openings continue to surpass hirings suggesting that employers are still struggling to find skilled workers to fill open positions.   The unemployment rate recently hit an 18-year low as the labor market nears full employment. 

The Mortgage Bankers Association (MBA) weekly mortgage application saw an increase in mortgage applications for the week ending 6/1.  New purchase application submissions were up 4.0% and refinance application submissions were up 4.0% for a composite increase of 4.1%.  Mortgage rates started to trend downward late last month, and home buyers seem to be taking advantage of the interest rate reprieve.  MBA economist, Joel Kan, explains, “concerns over Italy’s political turmoil, and questions about the possible imposition of trade tariffs by the US on its major trade partners, pushes Treasury rates lower this week.”

Consumer credit posted its smallest increase in seven months in April, dampened by a slowdown in credit card use.  Total consumer credit is down 3.8% month-over-month to a level of $9.3 billion, but up 2.9% annually.  Nonrevolving credit, including student loans and auto loans but not mortgage loans, increased 3% month-over-month, the slowest pace since last September.  Nonrevolving borrowing typically picks up in September with students going back to college.  Revolving credit, like monthly credit card debt, grew 2.6% month-over-month.  Some economists posit tighter lending standards to lessened credit card use, however, borrowing was especially strong in Q4 2017 after hurricane and fire damage in the Southeast and West.

Next week, the Federal Reserve will hold its Federal Open Market Committee (FOMC) meeting.  The market is pricing in a rate hike, supported by a strong labor market and inflation nearing the Fed’s targeted rate.  In December, the Fed forecast three rate hikes in 2018 and so far has raised rates once. 

 

Sources: Bloomberg, Bloomberg, CNBC, MarketWatch, MarketWatch, MarketWatch, Mortgage News Daily

Doug Luza
Branch Manager
NMLS # 311377
Branch NMLS # 1198991


Doug Luza

PHONE: (832) 575-2210
dluza@cmgfi.com

APPLY NOW
© 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 with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org).