Mortgage Application: The U.S. economy is in a grim strait? Housing market is lost as mortgage demand falls and employment slows
U.S. housing market struggles in a context of economic uncertainty
Mortgage applications for buying a home fell 4% last week, CNBC reported. While mortgage rates are still relatively flat, current economic conditions and signs of weaker labor markets appear to be weakening consumer confidence, according to the report.
According to CNBC.Vice Vice Vice President and Deputy Chief Economist of the MBA, the latest data from the Mortgage Bankers Association found that although interest rates were much higher last year and while interest rates were much higher last year, the MBA’s deputy chief economist, according to Joel Kan, the application activity of mortgage loans, especially in home purchases, is increasing economics, especially in wider economy, especially in more and more signs, which are broader economy and signs that depend on weaknesses and can be gradually promoted. CNBC.
Kann also mentioned: “With the slow increase in housing lists in many markets and first-time home buyers are still in the mix, FHA’s purchase of apps performed better, with only a slight decline,” as stated in the report. ”
Refinancing activities slow down
Refinancing applications fell 4% this week, up 42% from the same period a year ago, according to CNBC.
The economist noted, “Refinancing activity has fallen again, mortgage rates are still close to 7%, and borrowers insist on falling rates. Given the pullback in refinancing, the average loan size of refinancing has dropped to less than $290,000, which is the lowest level in three months,” as stated in the report.
Weakening job growth will attract attention
According to ADP estimates, this shows data from the Bureau of Labor Statistics’ Friday non-agricultural wage data, private sector wages rose by only 62,000 in April, the smallest increase since July 2024, such as CNBC. This is due to U.S. President Donald Trump’s tariff uncertainty and its impact on hiring programs and the broader economic situation, the report said.
Salary growth is slow
Wage gains have also slowed down, as it increased by just 4.5% compared to staff a year ago, down 0.1 percentage point since March, CNBC reported. According to the report, those who switch jobs rose 6.9% and rose 0.2 percentage points last month.
Economists’ response to slowdown
“Unsecurity is the word today. Employers are trying to reconcile policy and consumer uncertainty with most positive economic data,” said Nela Richardson, chief economist at ADP. “It can be difficult to make hiring decisions in this environment.”
FAQ
What causes the decline in mortgage applications?
According to CNBC, economic uncertainty and concerns about the labor market have led many potential buyers not to apply for mortgages.
What is the latest job growth?
According to ADP estimates, the private sector payroll has added only 62,000 jobs, the smallest increase since July 2024.
