Purchase Applications -11.0% from a Year ago.
MBA Purchase Applications (week ended 11/7/2014)
– Purchase Index Week/Week +1.0%. Previous weeks were +3.0%, -5.0%, -5.0%, -1.0%, +2.0%, +0.0%, -0.3%, +5.0%, -3.0%, -2.0%, +3.0%, and -0.4%.
– Refinance Index Week/Week -1100%. Previous weeks were -6.0%, -7.0%, +23.0%, +11.0%, +5.0%, -0.3%, -7.0%, +10.0%, -11.0%, +1.0%, and +3.0%.
– Composite Index Week/Week -0.9%. Previous weeks were -2.6%, -6.6%, +11.6%, -5.6%, +3.8%, -0.2%, -4.1%, +7.9%, -7.2%, +0.2%, and +2.8%.
The Purchase Index is -11.0% from a year ago. This is not about rates but instead is about CFPB-mandated tougher mortgage qualifying and stagnant middle class income.
Wholesale Trade (September 2014)
– Inventories month/month +0.3%. Previous was +0.7%.
Inventory growth was too large compared to retail demand and we are seeing a drop in inventory growth.