August revolving credit use rose at highest rate since late 2017
Revolving credit surged at an annual rate of 11.25 percent in July, the highest increase since November 2017. Overall consumer credit increased at a seasonally adjusted annual rate of 6.75 percent, while nonrevolving credit use (such as for car loans and student loans) increased at an annual rate of 5.25 percent.
Producer Price Index up 0.1 percent in August and 1.8 percent year-on-year
The Producer Price Index for final demand rose 0.1 percent in August and was up 1.8 percent year-on-year. However, the August advance was due to a 0.3-percent increase in the index for final demand service, whereas prices for final demand goods fell 0.5 percent. The index for final demand less foods, energy, and trade services rose 0.4 percent in August, and was up 1.9 percent year-on-year.
Mortgage applications rise 2.0 percent, rates slip 5 basis points
The Market Composite Index increased 2.0 percent from one week earlier, with purchase loans rising 5.0 percent (up 9.0 percent year-on-year) and refinance activity up 0.4 percent (and up 169 percent year-on-year). The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.82 percent from 3.87 percent.