Market News 7-5-19
Mortgage Market Update
A gauge of U.S. service industries dropped to its weakest level in almost 2 years, led by a cooling in employment that may temper labor market optimism. ADP reported private payrolls rose only 102,000 in June, missing expectations. Weakness in the labor market could support a Fed rate cut later this month. The 4th of July holiday week is typically marked by low trading volume, as markets close and traders take time off.
A recent report found 83% of potential buyers citing student loans as impacting affordability. This is delaying purchases by an average of 7 years. CoreLogic’s May Home Price Index shows a 3.6% year-over-year increase. Home values are growing fastest in lower price tiers. Thanks to lower rates and slower price hikes, purchase mortgage applications are on the rise. This may soon indicate a reversal in declining home sales.