Is Inflation Headed down?

MBA Mortgage Applications (week ended 9/9/2016)

– Purchase Index Week/Week +9.0%. Previous weeks were +1.0%, +1.0%, -0.3%, -4.0%, +3.0%, -2.0%, -3.0%, -2.0%, +0.0%, +4.0%, -3.0%, -2.0%, and -5.0%.
– Refinance Index Week/Week +2.0%. Previous weeks were ++1.0%, +4.0%, -3.0%, +10.0%, -3.0%, -15.0%, -1.0%, +11.0%, +21.0%, -2.0%, +7.0%. -1.0%, and +7.0%.
– Composite Index Week/Week +4.2%. Previous weeks were +0.9%, +2.8%, -2.1%, +7.1%, -3.5%, -11.2%, -1.3%, +7.2%, +14.2%, -2.6%, +2.9%, and -2.4%.

Import and Export Prices (August 2016)

– Import Prices month/month -0.2%. Previous was +0.1%
– Export Prices month/month -0.8%. Previous was +0.2%
– Import Prices year/year -2.2%. Previous was -3.7%
– Export Prices year/year -2.4%. Previous was -3.0%.

I believe that a lot of people are missing the fact that because of slack worldwide demand prices and inflation will trend down in 4thQ2016.