New Home Sales very Weak

MBA Mortgage Applications (week ended 4/18/2014)

– Purchase Index Week/Week -3.0%. Previous weeks were +1.0%, +3.0%, +1.0%, +3.0%, -1.0%, -1.0%, +9.0%, -4.0%, -6.0%, -5.0%, -4.0%, and +2.0%.

– Refinance Index Week/Week -4.0%. Previous weeks were +7.0%, -5.0%, -3.0%, -8.0%, -1.0%, -3.0%, +10.0%, -11.0%, -3.0%, -0.2%, and +3.0%.

– Composite Index Week/Week -3.3%. Previous weeks were +4.3%, -1.6%, -1.2%, -3.5%, -1.2%, -2.1%, +9.4%, -8.5%, -4.1%, -0.2%, and +0.4%.

The Purchase Index had been positive for the 4 previous weeks.  Year-on-year it is -18.0%.

New Home Sales (March 2014)

– New Home Sales (seasonally adjusted, annualized)  384,000.  Previous was 449,000.

This and the Purchase Index of the Mortgage Applications data show housing quite weak.  This is the lowest level of New Home Sales in 8 months.  New Home Sales drive construction and home building is an activity which creates jobs not only for construction workers but for all associated with that which goes into a house.  Why is the data weak?  For starters try: tighter mortgage lending standards, low inventory driving prices up to the point of being unaffordable, and weakened middle-class income.