Mortgage Applications Flat. FOMC.

MBA Mortgage Applications (week ended 1/24/2014)

– Purchase Index Week/Week +2.0%. Previous weeks were -4.0%, +12.0%, -1.0%, -4.0%, -6.0%, +1.0%, -4.0%, -0.2%, +6.0%, -1.8%, -1.0%, and +2.0%.

– Refinance Index Week/Week -2.0%. Previous weeks were +10.0%, +11.0%, +5.0%, -8.0%, +2.0%, -18.0%, -0.2%, +6.0%, -4.0%, +9.0%, and -1.0%.

– Composite Index Week/Week -0.2%. Previous weeks were +4.7%, +11.9%,+2.6%, -6.3%, -5.5%, +1.0%, -12.8%, -0.3%, -2.3%, -2.8%, and +6.4%.

Little change in the week/week but activity is down about 12% from the previous year.

 

FOMC meets today.  Markets are assuming that the Fed will continue its policy of tapering which should have QE3 ending near the end of this year.  QE has created and enormous increase in excess bank reserves so it is not the case that there will be a shortage of money to lend.  Last week’s Fed H.3 report showed $2.44 trillion in excess bank reserves.