Mortgage Applications Increase, Keep an Eye on GDP

Mortgage applications ticked up last week, and gross domestic product growth was revised to be slightly lower than previously recorded, reports showed Wednesday.

Here’s a quick look at the most significant economic indicators of the day and what they mean for consumers.

MBA Mortgage Applications Index

• The Number: The volume of mortgage applications for purchasing and refinancing a home increased a bit from last week, but they’re still about half of what they were at the beginning of the year, according to an index from the Mortgage Bankers Association.
• What the Economists Are Saying: Interest rates on mortgages fell slightly from the week before, opening up the market for refinancing a tad. 
• What It Means for You: Mortgage rates are likely to continue their overall ascent, so if you’re looking to buy or refinance, timing is going to be crucial.
  

Gross Domestic Product

• The Number: Real gross domestic product (GDP) shrank by 1.6% in the first quarter of 2022, according to the Bureau of Economic Analysis, more than originally thought. The bureau revised its estimate for the second time, after reporting in May that GDP had declined 1.5% and in April that it had shrunk 1.4% in the first quarter. 
• What the Economists Are Saying: Economists expected the GDP estimate to be unchanged from its previous measure. The dip in GDP marks the first time since the second quarter of 2020 that the economy shrank.
• What It Means for You: Keep an eye out for the advanced estimate of the second quarter’s GDP numbers when they’re released in late July. Two consecutive quarters of negative GDP growth can be a sign the economy is going into a recession. 

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