THE BASIS POINT

Fundamentals 8/24: Home prices, loan apps, durable goods

MBAA Mortgage Applications (week ending 8/19)
– Purchase Index – Week/Week: -5.7%
– Refinance Index – Week/Week -1.7%
– Composite Index – Week/Week -2.4%
-Purchase apps lowest since 1996
-Weak purchases in what should be heart of home buying season
-Lack of buyer confidence, concern about values, tough qualifying standards

FHFA Home Price Index (June)
-Month/Month: +0.9%
-Year/Year: -4.3%
-This is only homes with Fannie/Freddie loans
Yesterday’s fundamentals indicated geographic shift in home sales with the Northeast and West declining and the South gaining. But y’all knew that already.
FHFA Home Prices

Durable Goods Orders (July)
-New Orders – Month/Month: 4.0%
-New Orders – Year/Year: 9.2%
-Ex-transportation – Month/Month: 0.7%
-Ex-transportation – Year/Year: 9.6%
-This is a positive report.
-Month/Month change in overall vs. ex-trans indicated strength in the automotive sector.