Weekly Economic Review: Mortgage Rates Continue to Drop Following Brexit

Posted by Laine Smith on 7/2/16 10:45 AM

Topics: Economy

Britain’s exit of the European Union (Brexit) continued to be the largest influence on U.S. markets this week. As a result, mortgage rates trended even lower, reaching levels not seen in several years.

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May’s Pending Home Sales report, which tracks contract signings, indicated a slowing trend heading into the summer homebuying market. The index dropped a heavy 3.7 percent following a 3.9 percent increase in April. Year-over-year, pending sales are down 0.2 percent.

Last week in the economy:

  • The purchase sector of MBA Mortgage Applications was down 3 percent despite rates hitting three-year lows in the June 24 week. Refinance applications were also down 2 percent following a 7 percent jump the week prior.
  • Initial Jobless Claims increased by 10,000 in the June 25 week.
  • Consumer Confidence jumped nearly 6 points in June, hitting a higher-than-expected 98.0 level. According to Bloomberg, this is the highest level since October 2015.

What’s on economic calendar for the week of July 4, 2016:

  • Wednesday – MBA Mortgage Applications, FOMC Minutes
  • Thursday – Jobless Claims, Bloomberg Consumer Comfort Index, ADP Employment Report
  • Friday – Employment Situation, Consumer Credit

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