Mortgage applications decline despite low rates, Stocks higher, Oil prices fall
July 20, 2016
Wednesday – July 20
Despite record low mortgage rates, total mortgage application volume declined in the latest week as did refinances and purchases. The Mortgage Bankers Association (MBA) reports that its Market Composite Index, a measure of total mortgage application volume, fell 1.3% in the latest week as rates hold near 3-year lows. The MBAs refinance index decreased 1% from the previous week, while the seasonally adjusted purchase index fell 2%. The spring buying season is behind us and potential borrowers may be holding off on decisions to purchase or refinance for the next few weeks or so.
Stocks are higher again on Wednesday after solid earnings reports from Microsoft and Morgan Stanley. The Dow is on its longest winning streak since March 2013, having closed with gains for eight straight sessions. Yesterday’s record close … 18,559.01. Investors will now look to earnings to see if the numbers can continue to fuel the recent rally in equities. But at record highs, the smart money may be looking to take some profits.
Oil prices fell to a two-month low today due to rising stockpiles and a rising dollar. Oil is priced in dollars, so as the dollar rises, it takes more dollars to purchase oil. On Wednesday, a barrel of West Texas Intermediate oil had fallen below $45 from $52 on June 8. The decline in oil prices has also pushed gas prices at the pumps lower. The national average price for a regular gallon of gasoline fell to $2.19 on Wednesday, down from $2.32 a month ago and well below the $2.75 seen in July 2015.
