Purchase Applications down 12% from Last Year

MBA Mortgage Applications (week ended 5/16/2014)

– Purchase Index Week/Week -3.0%. Previous weeks were -1.0%, +9.0%, -4.0%, -3.0%, +1.0%, +3.0%, +1.0%, +3.0%, -1.0%, -1.0%, +9.0%, and -4.0%.

– Refinance Index Week/Week +4.0%. Previous weeks were +7.0%, +2.0%, -7.0%, -4.0%, +7.0%, -5.0%, -3.0%, -8.0%, -1.0%, -3.0%, and +10.0%.

– Composite Index Week/Week +0.9%. Previous weeks were +3.6%, +5.3%, -5.9%, -3.3%, +4.3%, -1.6%, -1.2%, -3.5%, -1.2%, -2.1%, and +9.4%.

Apart from we folks who make money on refinancing, it is the Purchase Application Index which is an important leading indicator for housing.  Housing is weak. Purchase Applications are -12.0% from a year ago.  Why?  Several reasons.  Investors are slowing purchases.  CFPB has made qualifying tougher and thus reduced demand. Prices had jumped up making housing less affordable.