There has been some good news and bad news in the past month if you are a potential homebuyer or looking to refinance your current home. The bad news is that home loan rates on the 30-year fixed conventional mortgage have gone from 3.5% to around 4.5% in the latest survey.
The good news is that mortgage lending standards eased for the fifth consecutive month, reports the Mortgage Bankers Association (MBA). The MBAs Mortgage Credit Availability Index report, which analyzes data from AllRegs Market Clarity product, the MCAI escalated to an index score of 112.3 in July, rising 2.2% from 109.81 in June.
The service sector of the U.S. economy perked up in July expanding more than expected rising to 56.0 from the 52.2 recorded in June. Readings over 50 indicate more companies are expanding instead of contracting. Of the 18 industries that were were surveyed, 16 reported growth last month. However, the employment gauge fell to 53.2 from 54.7.