• Shelly Roark
  • News
  • Market Forecast: Consumer Credit, Job Openings, Retail Sales

Market Forecast: Consumer Credit, Job Openings, Retail Sales

  • January 08, 2018

Last week, mortgage rates started to trend slightly upward.  This week, there are no significant housing reports scheduled, other than the weekly mortgage application survey.  Market-moving reports include consumer credit, the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS), and retail sales. 

Consumer credit measures the total balance of outstanding consumer debt segmented by revolving and nonrevolving credit.  Revolving credit is comprised of monthly debts like credit card bills.  Nonrevolving credit measures longer-term debt like student loans and auto loans.  Growth in consumer credit can be a sign of economic strength because consumers are confident they will be able to repay debts.  Too much growth can be a sign of economic stress because consumers may be borrowing to offset lack of wage growth.

The JOLTS report tracks changes in the number of job openings from month to month.  Though the data lags by one month, it is still used to evaluate the health of the labor market.  In October, there were 5.996 million job openings.  The unemployment rate is near a historical low of 4.1% and employers are struggling to find skilled workers to fill open positions.

The retail sales report counts the total receipt of goods and services at retail stores.  This week’s December report will show how holiday spending impacted the figure.  In November, retail sales strengthened 0.8% month-over-month and were up a solid 1.0% less autos.  Specifically, e-commerce had a big holiday boost.

Economic trends like consumer spending and job creation influence housing activity.  When consumers are gainfully employed they are able to finance large purchases like houses.  When job growth is stunted, or consumers are borrowing too much to obtain financing, housing activity will suffer. 


Sources: Bloomberg, MarketWatch, Mortgage News Daily

Shelly Roark

NMLS # 207714

Shelly Roark

PHONE: 512-470-4808

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).