THE BASIS POINT

It’s Housing Data Day.

 

MBA Mortgage Applications (week ended 6/17/2016)

– Purchase Index Week/Week -2.0%. Previous weeks were -5.0%, +12.0%, -5.0%, +5.0%, -6.0%, +0.4%, +1.0%, -2.0%, -1.0%, +8.0%, -2.0%, +2.0%, and -1.0%.

– Refinance Index Week/Week +7.0%. Previous weeks were -1.0%, +7.0%, -4.0%, +0.4%, +1.0%, +0.5%, -6.0%, -5.0%, +3.0%. +11.0%, +7.0%, -3.0%, and -5.0%.

– Composite Index Week/Week +2.9%. Previous weeks were -2.4%, +9.3%, -4.1%, +2.3%, -1.6%, +0.4%, -3.4%, -4.1%, +1.3%, +10.0%, +2.7%, and -1.0%.

The refi index reflects the bottom in rates which we had last week. The Purchase Index is disappointing. Despite what economic media say each week the purchase index has nothing to do
with rates or, more accurately, nothing to do with any variation we have seen in rates in the last 8 years. People do not suddenly decide to buy a home because rates went down 0.125%.

 

 

FHFA House Price Index (April 2016)

– month/month change +0.2%. Previous was +0.8%
– year/year change +5.9%. Previous was +6.2%

I am the odd one out who always believes that large gains in home prices are really not helpful. Prices increase above income increases make homeownership less possible.

 

 

Existing Home Sales (May 2016)

– Existing Home Sales seasonally adjusted, annualized 5,530,000. Previous was 5,430,000
– month/month change +1.8%
– year/year change +4.5%.

Gaining slightly but ay a slower than expected rate.

 

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