Market News 9-12-19
Mortgage Market Update
Consumer borrowing was up $23.3 billion in July, the biggest monthly gain since Nov. 2017. The increase pushed total consumer credit to a record $4.1 trillion. Despite forecasts of a looming recession for 2020, economic data and the labor market continue to show strength. The Fed will meet next week. Last month’s meeting produced the first policy rate cut in 10 years, and speculation continues now for a second.
Mortgage applications to purchase a home increased 5% last week and were 9% higher than the same week a year ago. Total application volume rose 2%. Inventories grew tighter in August, strengthening competition in the market. However, median listing prices saw their largest July-to-August drop since 2012. The Treasury released a plan last week to recapitalize mortgage giants Fannie Mae and Freddie Mac and to release them from government conservatorship.