THE BASIS POINT

Lower Rates = More Mortgage Applications.

MBA Mortgage Applications (week ended 7/12016)

– Purchase Index Week/Week +4.0%. Previous weeks were -3.0%, -2.0%, -5.0%, +12.0%, -5.0%, +5.0%, -6.0%, +0.4%, +1.0%, -2.0%, -1.0%, +8.0%, and -2.0%.
– Refinance Index Week/Week +21.0%. Previous weeks were -2.0%, +7.0%. -1.0%, +7.0%, -4.0%, +0.4%, +1.0%, +0.5%, -6.0%, -5.0%, +3.0%. +11.0%, and +7.0%.
– Composite Index Week/Week +14.2%. Previous weeks were -2.6%, +2.9%, -2.4%, +9.3%, -4.1%, +2.3%, -1.6%, +0.4%, -3.4%, -4.1%, +1.3%, and +10.0%.

Refi applications rose because of low rates. Purchase application recovered some of the losses of the 3 previous weeks and are up 23% year-on-year.

 
Trade Deficit (May 2016)

– Trade Deficit $41.1 Billion. Previous was $37.4 Billion.

Exports of goods and services fell because of a weakening world economy. Imports rose indicating that the U.S. economy is in better shape than most of the rest of the planet.

 

Redbook Chain Store Sales (week ended 7/2/2016)

– Store Sales year/year +0.6%. Previous was +0.5%.