- Mortgage rates decreased two basis points last week, showing little movement, according to the Freddie Mac Primary Mortgage Market Survey released July 31st. This is the fourth week in a row remaining in the same narrow range. Continued economic growth, along with moderating house prices and rising inventory, bodes well for buyers and sellers alike.
- Mortgage applications decreased 3.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 25th. “Mortgage applications fell to their lowest level since May, with both purchase and refinance activity declining over the week. There is still plenty of uncertainty surrounding the economy and job market, which is weighing on prospective homebuyers’ decisions,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The 30-year fixed rate was little changed, but high enough that there was not much interest in refinancing, pushing the refinance index lower for the third straight week. Purchase applications decreased by almost 6 percent, as applications for conventional, FHA, and VA purchase loans fell, despite slowing home-price growth and increasing levels of for-sale inventory in many regions.”
- The Federal Reserve’s preferred inflation gauge showed that prices increased slightly in June as the central bank continues to monitor for signs of tariff-induced inflation impacting consumers. The Commerce Department on Thursday reported that the personal consumption expenditures (PCE) index rose 0.3% monthly and 2.6% from a year ago. Core PCE, which excludes volatile food and energy prices, was up 0.3% monthly in June and 2.8% from a year ago. On an annual basis, core PCE ticked higher from 2.7% last month, while the monthly figure was also up from the 0.2% reading in May. Michael Pearce, deputy chief U.S. economist at Oxford Economics, said that the latest PCE report shows a slowing consumer with tariffs beginning to cause a rise in prices. “Tariffs are beginning to make their mark on the inflation data. While services inflation remains subdued, helped by slowing housing inflation, core goods prices are up sharply in recent months,” Pearce explained.
- The number of Americans filing new applications for unemployment benefits increased marginally last week, suggesting that the labor market remained stable, though it is taking longer for laid-off workers to find new opportunities. Initial claims for state unemployment benefits rose 1,000 to a seasonally adjusted 218,000 for the week ended July 26, the Labor Department said on Thursday. Economists polled by Reuters had forecast 224,000 claims for the latest week. The labor market has slowed, with economists saying uncertainty over where President Donald Trump’s tariff levels will eventually settle has left businesses wary of adding headcount. But labor supply has also declined amid the White House’s immigration crackdown. Employers’ hesitancy to increase hiring means there are fewer jobs for those being laid off. Government data on Tuesday showed there were 1.06 job openings for every unemployed person in June, compared to 1.33 in January.
