• Kevin Long
  • News
  • Market Recap: Job Openings Down Slightly, Refinance Apps Surge, Consumer Credit Expands

Market Recap: Job Openings Down Slightly, Refinance Apps Surge, Consumer Credit Expands

  • August 09, 2019

CMG Image

Mortgage rates trended downward this week, reaching year-long lows according to some sources.  Job openings slipped slightly.  New purchase mortgage application submissions declined but refinance mortgage application submissions are up.  Consumer credit expanded less than expected. 

The JOLTS report showed labor demand has moderated in recent months, but the jobs market is still strong.  In June, job openings fell slightly to a level of 7.348 million, after May’s figure was revised higher.  Companies hired 5.7 million workers and 5.15 million workers quit.  This data marks the 16th straight month that job openings outnumber the unemployed, indicating employers are struggling to find the right workers to fill open positions. 

The Mortgage Bankers Association (MBA) weekly mortgage application survey was mixed for the week ending 8/2.  Refinance applications surged up 12.0% and new purchase applications declined 2.0% for a composite increase of 5.3%.  Mike Fratantoni, MBA senior vice president and chief economist, stated, “the 30-year fixed rate mortgage fell to its lowest level since November 2016. We fully expect that refinance volume will jump even higher this week given the further drop in rates.” 

Consumer credit expanded in June, but at a slower pace than expected.  Overall consumer credit reached an annual growth rate of 4.3%.  Revolving credit, like monthly credit card debt, is down 0.1% in June after strong increases in May and April.  Nonrevolving credit, like student loans and car loans, increased 5.8% in June.  Weaker credit card spending could mean consumers are holding off on making major purchases.  Consumer spending is a strong driver of economic growth.

Mortgage rates will likely stay low through the end of the year triggering more new purchase and refinance activity.  If you’re considering buying a home or refinancing your existing mortgage, compare your options with our mortgage calculator. 


Sources: Bloomberg, 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).