Blog posted On November 08, 2019
Mortgage rates trended slightly upward this week but continue to come in at historic lows. Job openings dropped for the fourth straight month. New purchase mortgage application submissions declined, and refinance mortgage application submissions increased. Revolving credit declined but non-revolving credit increased.
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) showed job openings fell from 7.3 million to 7.02 million in September. The quits rate slipped from 2.4% to 2.3%. Employers have cut back on hiring across all sectors as economic growth slows down.
For the week ending 11/1, new purchase applications declined 3.0% and refinance applications increased 2.0% for a composite decrease of 0.1%. A limited amount of homes for sale continues to create a competitive market, especially for first-time home buyers. Joel Kan, associate vice president of economic and industry forecasting, said, “Amidst persistent supply constraints in the entry-level price range, there’s evidence that high-end home buyers are more active this fall.”
In September, consumer credit expansion grew at the slowest pace in over a year, growing at an annual rate of 2.8%. Revolving credit, like credit cards, declined at a rate of 1.2% month-over-month. Nonrevolving credit, like student and auto loans, increased at a rate of 4.2% month-over-month. Low unemployment and a solid jobs report are positive signs for the economy, but business investment has slowed.
Low mortgage rates continue to incentivize homeowners to refinance their mortgage loans and lock in a lower rate. If you have any questions about a mortgage refinance, please let me know.