• Corporate
  • News
  • Market Forecast: Mortgage Applications, ADP Employment, and Consumer Credit

Market Forecast: Mortgage Applications, ADP Employment, and Consumer Credit

  • January 06, 2020

CMG image

The week ahead will be the first full week of the year.  The Mortgage Bankers Association (MBA) will release its first weekly mortgage application survey of 2020.  The ADP employment report and consumer credit are also scheduled for release. 

The MBA weekly mortgage application survey tracks week to week changes in the submission of new purchase and refinance mortgage applications.  Due to the holidays, the MBA did not release a mortgage application survey last week.  This week’s survey will cover the weeks ending 12/27 and 1/3.  For the week ending 12/20, new purchase application submissions declined 5.0% and refinance application submissions declined 5.0% for a composite decrease of 5.3%. 

The ADP employment report is based on data from approximately 400,000 US businesses employing approximately 23 million employees nationwide. In November, the ADP report showed the addition of 67,000 jobs, significantly lower than estimates.  Trade tensions may be impacting the labor market as employers hold off from hiring.

The consumer credit report tracks total outstanding consumer debt segmented by revolving and nonrevolving credit.  Revolving credit includes monthly debt like credit card statements and nonrevolving credit includes longer term debt like student loans and auto loans but excludes mortgage debt.  In October, total consumer credit increased at a rate of 5.5%.  Revolving credit increased 8.8% and nonrevolving credit increased 4.3%.  The data suggests consumer spending is healthy and holiday shopping reports will likely be positive. 

Consumer spending and job creation both impact the housing market indirectly.  When the labor market is strong, consumers are more likely to make investments like home purchases.  Low mortgage rates and a healthy economy could bode well for the Spring home buying season, predicted to start early in 2020. 

 

Sources: CNBC, Econoday, MarketWatch, MarketWatch, MBA, Mortgage News Daily

  • Facebook Icon
  • Linked In Icon
  • Twitter Icon
  • Google Plus Icon

Latest Tweets

© 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 Broker and Lender #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 (http://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1820).