US Economy News Today: Mortgage Demand Drops as High Rates Discourage Refinancing

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Taylor Tompkins
Taylor Tompkins
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Taylor Tompkins has worked for more than a decade as a journalist covering business, finance, and the economy. She has logged thousands of hours interviewing experts, analyzing data, and writing articles to help readers understand economic forces. She is the Economics Editor for news at Investopedia.

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Diccon Hyatt
Diccon Hyatt
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Diccon Hyatt is an experienced financial and economics reporter who has covered the pandemic-era economy in hundreds of stories over the past two years. He's written hundreds of stories breaking down complex financial topics in plainspoken language, emphasizing the impact that economic currents would have on individuals' finances and the market. He's also worked at The Balance, U.S. 1, Community News Service and the Middletown Transcript.
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Updated July 10, 2024
10:44 AM EDT
An illustration shows various facets of the economy.

Investopedia/Julie Bang

Welcome to Investopedia's economics live blog, where we explain what the day's news says about the state of the U.S. economy and how that's likely to affect your finances. Here we compile data releases, economic reports, quotes from expert sources and anything else that helps explain economic issues and why they matter to you.

Today, Federal Reserve Chair Jerome Powell is back on Capitol Hill and we will get some insight into wholesale inventories.

Wholesale Inventories Rise to Meet Expectations

July 10, 2024 10:44 AM EDT

Total wholesaler inventories came in as expected in May, moving higher by 0.6% from the prior month to reach $901.7 billion, Census Bureau data showed. The results aligned with projections from economists surveyed by the Wall Street Journal and Dow Jones Newswire.

The Census Bureau also revised April wholesale inventories higher. 

The most stark change in inventory levels came in nondurable goods, with stocks of farm products jumping by 5.2% and drug inventories increasing by 3.1%. Petroleum stocks were lower by 6.4%. For durable goods, automotive inventories were higher by 1.4% and machinery stocks were up 1%.

-Terry Lane

Mortgage Demand Drops as High Rates Discourage Refinancing

July 10, 2024 08:58 AM EDT

Demand for mortgages slipped last week even as the mortgage rate declined slightly, data from the Mortgage Bankers Association showed.

The MBA’s Market Composite Index was lower by 0.2% for the holiday-shortened week ending July 5, as the 30-year, fixed-rate mortgage declined to 7.0%, moving lower by 0.3 percentage points.

The data showed home purchase applications were up by 1% from the prior week, driven by increases in government-backed Federal Housing Administration (FHA) and Veterans Administration (VA) loans.

Refinancing remained low, however, decreasing by 2% on the week. 

“Although home equity gains have been significant in recent years, most borrowers do not have much of an incentive to refinance at current rates,” said Joel Kan, MBA's deputy chief economist. 

-Terry Lane

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  1. Census Bureau. “Monthly Wholesale Trade Report: May 2024.”

  2. MarketWatch. “U.S. Economic Calendar."

  3. Mortgage Bankers Association. “Mortgage Applications Decrease in Latest MBA Weekly Survey.”

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