Worst Service Sector Reading since October 2013.

MBA Mortgage Applications (week ended 2/19/2016)

– Purchase Index Week/Week +2.0%. Previous weeks were -4.0%, +0.2%, -7.0%, +5.0%, -2.0%,

+18.0%,-15.0%, +4.0%, -3.0%, +0.04%, +8.0%, -1.0%, and +12.0%.

– Refinance Index Week/Week -8.0%. Previous weeks were +16.0%, +16.0%, +0.3%, +11.0%, +19.0%,

+24.0%, -37.0%, +11.0%, +1.0%, +4.0%, -6.0%, -5.0%, and +2.0%.

– Composite Index Week/Week -4.3%. Previous weeks were +8.2%, +9.3%, -2.6%, +8.8%, +9.0%,

+21.3%, -27.0%, +7.3%, -1.1%, +1.2%, -0.2%, and -3.2%.
Purchase applications are up 27% year-on-year. From week-to-week they have resembled a tennis match.

 
PMI Services Flash (February 2016)

– Level 49.9.  Previous was 53.7.

This is a negative indicator for the economy.  The indicator has moved down for 7 months and is now indicating contraction. It is at its lowest level since 10/2013.  With manufacturingin or close to recession a negative reading in any service sector indicator is of veryserious concern.

 
New Home Sales  (January 2016)

– New Home Sales seasonally adjusted, annualized 494,000.  Previous was 544,000.

New Home Sales are down and this will not help Housing Starts.