• Lourdes Best
  • News
  • Market Recap: Job Openings Decline, Consumer Credit Up, Mortgage Apps Rebound

Market Recap: Job Openings Decline, Consumer Credit Up, Mortgage Apps Rebound

  • January 11, 2019

CMG Image

The US government is still in a state of partial shutdown, delaying the release of some economic indicators.  Mortgage rates have recently trended downward, resulting in a spike in mortgage application submissions.  The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) showed the number of job openings have declined.  Consumer credit expanded to a total outstanding debt of $3.98 trillion. 

The JOLTS report details monthly changes in job openings, hiring, and voluntary quits.  After hitting a record high of 7.29 million in August, job openings have steadily declined, down to a level of 6.89 million in November, indicating a tight labor market.  Despite the drop, the unemployment rate continues to hover around a 49-year low.  The voluntary quits rate ticked lower to a rate of 2.5% and although companies are still hiring, they have difficulty locating skilled workers to fill open positions.

Total consumer credit expanded in November by $22.1 billion to a seasonally adjusted $3.98 trillion.  Revolving credit, like credit card borrowing, slowed down slightly up 5.5% month-over-month after October’s 10.9% gain.  Nonrevolving credit, like auto loans and student loans excluding mortgage debt, is up 7.1% month-over-month after October’s 6.5% gain.  The business-as-usual consumer credit report is supportive of positive economic growth.  

The Mortgage Bankers Association (MBA) weekly mortgage application survey increased substantially for the week ending 1/4, new purchase applications increased 17% week-over-week and refinance applications increased 35% week-over-week, for a composite increase of 23.5%.  A gradual drop in mortgage rates during the month of December led to a sharp increase in mortgage application submissions.  MBA’s associate vice president of economic and industry forecasting commented, “mortgage rates fell across the board last week and applications rebounded sharply […] this drop in rates spurred a flurry of refinance activity – particularly for borrowers with larger loans.” 

The US government remains partially shutdown over a spending dispute.  While the shutdown has delayed the release of some economic indicators like the new home sales report and US construction spending, the overall impact on loan programs has been minimal.  Broken down by loan types, the shutdown has had minimal to no impact on conventional loans with Fannie Mae and Freddie Mac, FHA loans, or VA loan.  The USDA will not issue any new guarantees on USDA loans during the shutdown with conditional commitments cannot be guaranteed until the shutdown has ended.  If you have any specific questions about the government shutdown and your mortgage, please let me know. 


Sources: CNBC, Econoday, MarketWatch, MarketWatch, MarketWatch

Lourdes Best
Loan Officer
NMLS # 341095
Branch NMLS # 1647193

Lourdes Best

PHONE: (910) 684-4924

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).