MBA Mortgage Applications
– Purchase Index Week/Week -3.0 %. Previous weeks were -4.0%, +2.0%, – 1.4%, +0.3%, and +4.0%.
– Refinance Index Week/Week -12.0 %. Previous weeks were -8.0%, +3.0%, +0.3%, +5.0% and +6.0%.
– Composite Index Week/Week -9.8 %. Previous weeks were -7.3%, +7.0%, +1.8%, +0.2%, +4.8%, +4.5%.
The decrease in refinancing is due to rates having moved up. The decrease in the Purchase Index is more troubling for the housing market and the economy. I do not believe that any significant number of people have been driven out of purchasing when rates are this low.
Existing Home Sales (April 2013)
– Existing Home Sales (seasonally adjusted annualized rate) 4,970,000. Previous month was 4,920,000
– Existing Home Sales Month/Month Change +0.6%. Previous was -0.6%
– Existing Home Sales Year/Year Change +9.7%.
What is more important is that supply is starting to show some elasticity with 230,000 units added making the supply go from 4.7 to 5.2 months of sales. The “Elasticity” of any commodity means that supply should increase when price increases. Inelastic supply had been caused by so many underwater potential sellers.
Existing Home Sales are at a 3 year high but just barely above (by 1,000) where they were last October. Existing Home Sales have been flat for 7 months.