• Kevin Long
  • News
  • Market Forecast: Job Openings, Mortgage Apps, Consumer Credit

Market Forecast: Job Openings, Mortgage Apps, Consumer Credit

  • November 04, 2019

CMG Image

Last week, the Federal Open Market Committee (FOMC) voted in favor of a rate cut and mortgage rates reacted by trending lower.  This week, the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) is scheduled for release on Tuesday and the consumer credit report comes out on Thursday.  The only significant housing report will be the Mortgage Bankers Association (MBA) weekly mortgage application survey on Wednesday. 

The JOLTS report tracks month-to-month changes in job openings, hiring, and voluntary quits.  In August, job openings declined for the third straight month down to a level of 7.05 million.  The quits rate also declined, down to 2.6%.  In a strong labor market, workers are confident they will find comparable employment if they choose to quit their job.  With the unemployment rate still near an all-time low, the labor market is still showing signs of strength.

The MBA weekly mortgage application survey reports week-to-week changes in the filing of new purchase and refinance mortgage application submissions.  For the week ending 10/25, new purchase application submissions increased 2.0% and refinance application submissions decreased 1.0% for a composite increase of 0.6%.  According to Joel Kan, the MBA’s associate vice president of economic and industry forecasting, the data suggests mortgage momentum is building.  He stated, “considering how much lower rates are compared to the end of 2018, purchase applications should continue showing solid year-over-year gains.”

Consumer credit tracks changes in the total amount of outstanding consumer credit, divided by revolving and nonrevolving credit.  Revolving credit includes short-term debt like monthly credit card debt and nonrevolving credit includes longer-term debt like car loans and student loans but not mortgage debt.  In August, total consumer credit expanded by $17.9 million at an annual growth rate of 5.2%.  Weaker credit card spending constricted growth, as revolving credit fell 2.2% in August.  Nonrevolving credit, however, increased 7.8% in August. 

Lower mortgage rates along with a slowdown in home price appreciation signal a positive housing market ahead.  Buyers who are looking to purchase in the upcoming months should get preapproved for mortgage financing before they start shopping.  Mortgage preapproval will help you stand out to home sellers and show them you have already started the financing process. 


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

Kevin Long
Area Sales Manager
NMLS # 195255
Branch NMLS # 1108042

Kevin Long

PHONE: (615) 567-8901

CMG Image
© 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).