• CMG MORTGAGE, INC. NMLS #1820

Market Forecast: Consumer Credit, Job Openings, and Retail Sales

  • January 09, 2017

Last week, mortgage rates opened the year with a week-over-week decline.  This week is the first full week of the new year with several important economic reports including consumer credit, JOLTS, and retail sales.

Consumer credit is a measure of the value of consumer installment credit outstanding.  Healthy growth in consumer credit is a positive economic measure indicating responsible spending and borrowing.  Too much growth in consumer credit can be negative if there is too much debt relative to income levels.  The demand for credit has a direct impact on interest rates. 

The Job Openings and Labor Turnover Survey (JOLTS) tracks the monthly change in job openings.  JOLTS forecasts the strength of the labor market breaking down the report by job openings, hirings, and separations. 

Retail sales measures consumer spending in stores that sell merchandise and food services.  Consumer spending accounts for more than two-thirds of the economy.  Growth in spending is reflective of income growth and credit confidence, while decline in spending may foreshadow economic downturn.

Mortgage rates have gone up since the presidential election and then the federal interest rate hike.  The Federal Open Market Committee forecasts three additional rate hikes this year as the economy strengthens. 

 

Sources: Mortgage News Daily, MarketWatch, Bloomberg

 

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).