THE BASIS POINT

Housing Recovery Far from “All in.”

New Home Sales (October 2012)

New Home Sales (Seasonally Adjusted Annualized Rate) 368,000. Previous was 389,000.

Mortgage Applications (week ended 11/23/2012)

Purchase Index – Week/Week +3.0%
Refinance Index – Week/Week -2.0%
Composite Index – Week/Week -0.9%

We have mixed messages: purchase applications are up and New Home Sales are down. While the fall in New Home Sales was likely Sandy related, it is not yet time to dismiss that and  cheer that housing is recovered. It is doing modestly better but there are significant impediments: tighter than ever mortgage qualifying standards, high unemployment, and insecurity generated by the inability of politicians to seriously address fiscal issues.