• Shelly Roark
  • News
  • Market Recap: Consumer Credit Expands, JOLTS Increases, Retail Sales Drop

Market Recap: Consumer Credit Expands, JOLTS Increases, Retail Sales Drop

  • July 14, 2017

This week, mortgage rates started to fall after Federal Reserve Chair Janet Yellen’s remarks at her semiannual testimony before the Senate Banking Committee.  Expectations of a September or December rate hike have dropped.  Consumer credit expanded at the fastest pace in seven months, there were fewer job openings than expected and retail sales declined.

Consumer credit measures the total outstanding credit among revolving and nonrevolving credit.  Revolving credit includes short-term debt like monthly credit card bills.  Nonrevolving credit includes longer-term debt like student debt and auto loans.  The Federal Reserve reported a consumer credit annual growth rate of 5.8% to a level of $18.4 Billion in May.

The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) increased less than expected in May.  The number of vacant positions dropped to 5.7 million, down from April’s figure of almost 6 million open positions.  Hiring increased at the fastest pace since December 2015, with 429,000 more hires month-over-month to a level of 5.4 million.  Voluntary quits exceeded 3.2 million, reaching a post-recession high.  The labor market remains tight.

Retail sales dropped again in June, down 0.2% month-over-month.  Year-over-year, however retail sales are up 2.8%.  The monthly decline was driven by spending drops at food and beverage stores, restaurants, and department stores.  Gasoline sales were also down.  Nonstore retailers, like ecommerce platforms were up and spending on building materials was also positive.  

Expectations for further interest rate hikes this year have started to wane after Yellen’s comments at her semiannual testimony.  She stated, “Because the neutral rate is currently quite low by historical standards, the federal funds rate would not have to rise all that much further to get to a neutral policy stance.”  Rates started to drop after the testimony and remain historically low.


Sources: Bloomberg, CNBC, MarketWatch, MarketWatch, Mortgage News Daily, US News and World Report

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).