Blog posted On October 05, 2020
Mortgage rates continued to trend downward last week. This week, the only significant housing report will be the Mortgage Bankers Association (MBA) weekly mortgage application survey. Other market-moving reports include consumer credit and the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS).
The consumer credit report tracks total outstanding consumer debt segmented by revolving and nonrevolving credit. Revolving credit includes monthly debt like credit card statements and nonrevolving credit includes longer term debt like student loans and auto loans but excludes mortgage debt. Total consumer credit increased at a rate of 3.6% from June to July. Revolving credit decreased slightly at 0.4% but nonrevolving credit increased at a rate of 4.8%
The Mortgage Bankers Association (MBA) weekly mortgage application survey tracks week to week changes in the submission of new purchase and refinance mortgage applications. Last week’s survey saw a composite decrease of 4.8%. New purchase application submissions dropped 2.0% and refinance application submissions fell 7.0%. Despite the week-over-week declines, mortgage application submissions are up 22% year-over-year.
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) tracks month to month changes in job openings, hirings, and voluntary quits. In July, the report showed a 10% month-over-month increase in job openings, with a total of 6.62 million available positions. The hiring rate fell slightly, hitting a level of 5.79 million. Voluntary quits rose 13.2%, hitting a level of 2.95 million.
Low mortgage rates are expected to persist this fall. Many home buyers will likely want to take advantage of these rates, causing increased buyer competition. If you’re interested in buying a home this fall, consider getting preapproved for a mortgage. Mortgage preapproval can help you stand out to sellers and strengthen your offer on a home. To get prequalified, fill out our online loan application right from our website.