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July 17, 2013

Housing Starts Fall

July 17, 2013

Housing Starts Fall

MBA Mortgage Applications
– Purchase Index Week/Week +1.0%. Previous weeks were 3.0%, -3.0%, +2.0%, -3.0%, +5.0%, -2.0%.

– Refinance Index Week/Week -4.0%. Previous weeks were -4.0%,-16.0%, -5.0%, -3.0%, +5.0%, -15%

– Composite Index Week/Week -2.6%. Previous weeks were -4.0%.-11.7%, -3.0%, 3.3%, +5.0%, -11.5%, -8.8%.

– Hopefully we have seen the worst in terms of rates moving up which, to some extent, have hurt applications.  What is most important for the economy is the Purchase Index as it gives a leading indication of Home Sales which helps Housing Starts.

Housing Starts  (June 2013)
– Starts (seasonally adjusted. annualized)  836,000. Previous was 914,000

– Permits (seasonally adjusted. annualized) 911,000. Previous was 974,000.

– Starts are in units.  A single-family home is one start.  A 40 unit apartment building is 40 starts. There was a 26.2% drop in the multifamily component after a 28.2% increase in May. The SFR fell 0.8%, following a 0.5% increase in May.

– This is another sign that the recovery remains slow at best.