Close

October 23, 2013

Home Price Growth Shows Restraint.

October 23, 2013

Home Price Growth Shows Restraint.

MBA Mortgage Applications (Week ended 10/18/2013)

– Purchase Index Week/Week +1.0%. Previous weeks were -5.0%, -1.0%, -6.0%, +7.0%, +3.0%, -3.0%, -0.4%, +2.0%, +1.0%, -5.0%, +1.0%, and -3.0%.

– Refinance Index Week/Week -1.0%. Previous weeks were +3.0%, +3.0%, +3.0%, +5.0%, +18%, -20%, +2.0%, -5.0%, -8.0%, -4.0%, and +0.0%.

– Composite Index Week/Week -0.6%.  Previous weeks were +0.3%, +1.3%, 0.4%, +5.5%, +11.2%. -13.5%, +2.0%, -2.5%., -4.6%, -4.7%, +0.2%, and -3.7%.

FHFA House Price Index (August 2013)

– Month/Month 0.3%. Previous was +1.0% – Year/Year +8.5%. Previous was +8.6%.

This index is only for homes purchased with FNMA or FHLMC financing.

Restraint in home price increase in important for economic health.  It’s great to cheer when the value of your home goes up but increasing home prices mean less money available to spend on anything else.

Good new/Bad News: The good news is that for the first time in 4 weeks the Purchase Index did not decline.  The bad news is that the purchase Index has declined in 3 of the last 4 weeks.  The Refi Index is extremely rate sensitive and the technically bullish Treasury market has driven rates lower.

Import/Export Prices (September 2013)

– Export Prices Month/Month 0.3%

– Export Prices Year/Year -1.6%. Previous revised to -1.0%

– Import Prices Month/Month  0.2%. Previous revised to +0.2%

– Import Prices Year/Year -1.0%. Previous revised to -0.2%.