Average Gas Price Falls Due to Low Demand

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Mortgage and Lending with The Federal Savings Bank/Lending in 50 states NMLS # 109616

Mortgage rates eased again in the MBA's latest survey after the spike in borrowing costs in the first half of this year. The 30-year fixed-rate mortgage fell 10 basis points to 5.74% with 0.65 points for the week ended July 1, 2022, reports the MBA. Within the data it showed that the Market Composite Index, a measure of total mortgage application volume, fell 5.4%, the Refinance Index dropped 8% and the Purchase Index declined 4%. Spokesperson Joel Kan said, "Purchase activity is hamstrung by ongoing affordability challenges and low inventory, and homeowners still have reduced incentive to apply for a refinance."

In economic news, the ISM Service Index fell to 55.3 in June from 55.9 in May and above the 54.3 expected. Within the data, it showed that the employment component declined. The Labor Department released its JOLTS report showing there were 11.25 million jobs available across the nation at the end of May, down from 11.68 million in April. The June Jobs Report will be released on Friday morning and features the closely watched Non-Farm Payrolls (NFP) data. NFP is a measure of the number of U.S. workers in the economy that excludes proprietors, private household employees, unpaid volunteers, farm employees, and the unincorporated self-employed.

Since hitting a record high of $5.01 last month on June 14, the national average price for a regular gallon of gasoline has fallen to $4.77. A year ago the price was $3.13. AAA motor club says the primary reason for the decline is lower demand at the pump as fewer people fueled up over the past two weeks. The lull, however, could end with the arrival of the summer driving season. “Domestic gasoline demand dipped recently, which took some of the pressure off of pump prices. About 80% of stations are now selling regular for under $5 a gallon,” said Andrew Gross, AAA spokesperson. "But July is typically the heaviest month for demand as more Americans hit the road, so this trend of easing prices could be short-lived."

 

Mortgage rates decline. June Jobs report on tap this week. Soaring gas prices ease.

Comments (2)

John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Jeff Jensen this is very good news that average gas prices, and mortgage rates fell.

Jul 06, 2022 04:52 PM
Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

This is an excellent post with great information. Thanks for sharing it.

Have a super fantastic week!
Joe Jackson, Realtor-KWCP

Jul 07, 2022 05:58 AM