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June 19, 2013

Mortgage Applications down

June 19, 2013

Mortgage Applications down

MBA Mortgage Applications  (week ended 6/14/2013)

– Purchase Index  Week/Week -3.0%. Previous weeks were +5.0%, -2.0%, 3.0%, -3.0%, -4.0%

– Refinance Index Week/Week -3.0%. Previous weeks were +5.0%, -15%, -12.0%, -12.0%

– Composite Index Week/Week -3.3%. Previous weeks were +5.0%, -11.5%, -8.8%, -9.8%.

It is easy to become concerned when Purchase Applications dip as rates rise.  To accommodate population growth and scrappage of existing homes lost to fire, flood or obsolescence we should have about 1,500,000 Housing Starts annually.  We have about two-thirds of that at present.  The damage to the economy from the Great Recession is so extensive that it may take another 5 years to get back to the natural level of Housing Starts. Along that path we will see the weekly ups and downs.