• CMG MORTGAGE, INC. NMLS #1820
  • Mark Neely
  • News
  • Market Recap: Consumer Credit and Mortgage Apps Up, JOLTS Down Slightly

Market Recap: Consumer Credit and Mortgage Apps Up, JOLTS Down Slightly

  • February 10, 2017

After some volatility earlier in the month, mortgage rates started to drop this week.  Last week, the Federal Open Market Committee (FOMC) voted to leave interest rates unchanged.  This week, the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) dropped slightly, and consumer credit posted modest gains.  Mortgage applications also increased this week, following a drop last week. 

The Labor Department’s JOLTS report showed little change from November to December.  Job openings dropped from a seasonally adjusted 5.505 million to 5.501 million.  The spread between openings and hirings is down to 249,000, one of the tightest differences of the past year compared to April’s 760,000.  The FOMC looks closely at reports like JOLTS to determine the strength of the job market.  December’s numbers suggest a strong demand for labor. 

Consumer credit increased in December, but not at the expected rate.  Revolving credit, such as monthly credit card use, was up $2.4 billion compared to November’s $11.8 billion increase.  Nonrevolving credit, like student and auto loans, was up $11.8 billion.  The composite index rose $14.2 billion, well under the projected $20 billion gain.  Holiday spending was fairly subdued compared to previous years.  For 2016, annual consumer credit is up 6.4%, down from 2015’s 7% rate. 

For the week ending on 2/3, mortgage applications saw a composite increase of 2.3%, following last week’s decline.  New purchase applications are up 2% and refinances are also up 2%.  Even with the increase, refinance applications are at their lowest level since June 2009.  Mortgage applications have experienced some volatility over the past month with the issuance and subsequent suspension of the FHA mortgage insurance premium cut.  

In a speech on Monday, Federal Reserve Bank of Philadelphia President Patrick Harker said, “March is on the table” for the next interest rate hike.  The FOMC considers jobs reports like JOLTS to evaluate the strength of the labor market as it pertains to the state of the economy.    The FOMC is scheduled to meet again on March 14-15. 

  

Sources: Mortgage News Daily, Business Insider, MarketWatch, Bloomberg, Bloomberg

Mark Neely
Senior Loan Officer
NMLS # 489379
Branch NMLS # 1093019


Mark Neely

PHONE: (615) 567-8882
mneely@cmgfi.com

APPLY NOW MY VIDEO
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).