Housing Remains Soft. Trade Deficit down.
MBA Mortgage Applications (week ended 1/2/2014)
– Purchase Index Week/Week -5.0%. Previous weeks were +1.0%, -7.0%, +1.0%, +3.0%, -10.0%, +12.0%, +1.0%, +3.0%, -5.0%, -5.0%, -1.0%, and +2.0%.
– Refinance Index Week/Week -12.0%. Previous weeks were +1.0%, +0.0%, +13.0%, -13%, -4.0%, -6.0%, -11.0% -6.0%, -7.0%, +23.0%, and +11.0%.
– Composite Index Week/Week -9.1%. Previous weeks were +0.9%, -3.3%, +7.3%, -7.3%, -4.3%, +4.9%, -0.9%, -2.6%, -6.6%, +11.6%, and -5.6%.
The Refinance Index is largely about rates and will benefit from this week’s lower rates. The Purchase Index is a macroeconomic concern and indicates the softness of the housing market.
At this time of year, the Purchase Index can be affected by bad weather.
ADP Private Jobs (December 2014)
– Private Jobs +241,000. Previous was 227,000.
Trade Deficit (November 2014)
– Trade Deficit $39.0 billion. Previous was $42.2 billion.
The entire drop in Trade Deficit is due to lower prices for imported oil. This will help GDP.