• Shelly Roark
  • News
  • Market Recap: Consumer Credit Expands, Job Openings Down, Mortgage Apps Up

Market Recap: Consumer Credit Expands, Job Openings Down, Mortgage Apps Up

  • September 13, 2019

CMG Image

Mortgage rates stayed near year-long lows this week, skewing slightly higher according to some sources.  Consumer credit expanded in July, powering overall economic growth.  Job openings are down and voluntary quit rates are up, as the labor market stays strong.  Both new purchase and refinance mortgage application submissions are up.  

Consumer borrowing accelerated in July, at the fastest pace in about two years.  Overall, consumer credit increased at an annual growth rate of 6.8%, up $23.3 billion.  Revolving credit, like credit card debt, increased 11.3% in July.  Nonrevolving credit, like student loans and auto loans, increased 5.3% in July.  With global trade tensions and businesses pulling back on investments, the economy is depending on consumer spending to propel growth.  Based on July’s data, consumers are not phased by recession talks. 

Job openings fell slightly in July, down 0.4% to level of 7.217 million.  Hiring is up 4.1% to a rate of 5.953 million.  Voluntary quits increased sharply, up 2.4% at a rate of 3.592 million.  The increase in quits suggests that workers are feeling more confident in the strong job market, and confident that if they choose to change jobs they will find comparable employment.

Both new purchase and refinance mortgage application submissions increased for the week ending 9/6.  New purchase applications are up 4.0% and refinance applications are up 5.0% for a composite increase of 2.0%.  Refinance activity has been steady for much of 2019, but purchase-wise, August was the busiest month of the year. 

A strong labor market and healthy consumer spending may counterbalance some recession woes, despite ongoing trade wars and global economic unrest.  If August’s momentum continues, this Fall will likely be a strong housing season, especially for buyers looking to save with low mortgage rates. 


Sources: CNBC, Econoday, MarketWatch, MarketWatch, 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).