New Home Sales (June 2013)
– New Home Sales (Seasonally Adjusted, Annualized) 497,000. Previous was revised down to 459,000.
MBA Purchase Applications (week ended 7/19/2013)
– Purchase Index Week/Week -2.0%. Previous weeks were +1.0%, 3.0%, -3.0%, +2.0%, -3.0%, and +5.0%.
– Refinance Index Week/Week +1.0%. Previous weeks were -4.0%, -4.0%,-16.0%, -5.0%, -3.0%, and +5.0%
– Composite Index Week/Week -1.2%. Previous weeks were -2.6%., -4.0%.-11.7%, -3.0%, 3.3%, +5.0%, -11.5%.
Together the New Home Sales and the Purchase Index of the MBA data indicate a modest downturn in New Home Sales and could restrain building.
We are presently seeing the lowest level of buying for investment that we have seen since October 2008. The market will now be defined by homeowners. Those folks who purchased homes for investment provided an enormous service by preventing prices from falling further.
Distressed Sales comprise the lowest percentage of sales since October 2008. The market is returning to something more normal as investors and distressed sales become less significant.