Purchase Mortgage Applications Indicate Flat Housing.

MBA Mortgage Applications (week ended 5/22/2015)

– Purchase Index Week/Week +1.0%. Previous weeks were  -4.0%, -0.2%, +1.0%, +0.0%, +5.0%, -3.0%, +7.0%, +6.0%, +5.0%, -2.0%, +2.0%, -0.2%, and +5.0%.

– Refinance Index Week/Week -4.0%. Previous weeks were +0.3%, -6.0%, -8.0%, -4.0%, +1.0%, -2.0%, -3.0%, +4.0%., +12.0%, -5.0%, -3.0%, and -0.2%.

– Composite Index Week/Week -1.6%. Previous weeks were -1.5%, -3.5%, -4.6%, -2.3%, +2.3%, -2.3%., +0.4%, +4.6%, +9.5%, -3.9%, -1.3%, -1.3%, and +0.1%.

Comments about the weakness in housing and, for example, Purchase Mortgage Application miss the point of what is happening.  Housing is weak because of stagnant middle-class income.

Changes in Refinance applications are highly rate dependent. Changes in Purchase applications at these rates are not.

 

Redbook Chain Store Sales (week ended 5/23/2015)

– Chain Store Sales year/year +1.6%. Previous was +1.8%.