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Strong Mortgage Application Data and Favorable Labor Market

Mortgage application numbers came in much hotter than predications.  Purchase applications increased for the week of 1/7/2019 by 17% and refinances increased by 35%.  Purchases are 4% higher than this time last year.   With the holidays coming to an end and interest rates improving, we are seeing much more mortgage application activity and very strong levels of demand.  This is the biggest gain in mortgage activity since 2015!  This data is compiled from the Mortgage Banker’s Association and focuses on single family homes sales and housing construction.

Source: http://bit.ly/2ybBBPX

Positive conditions are seen so far for 2019 from the Jobless Claims report.  Claims fell last week by 17,000 to 216,000.  This is a strong number and lower than many market experts’ expectations.  This decline is also gaining attention because it is lower despite the government shutdown where we saw 4,760 claims for unemployment just last week from federal jobs.  Even though the government shut down adds unique variables to the equation, this report as a whole points to a favorable labor market.

Source: http://bit.ly/2SKfng1