Close

May 29, 2013

Refinance Applications Hammered as Rates Increase

May 29, 2013

Refinance Applications Hammered as Rates Increase

MBA Mortgage Applications (week ended 5/24/2013)

– Purchase Index Week/Week +3.0%. Previous weeks were -3.0%, -4.0%, +2.0%,-1.4%, +0.3%, and +4.0%.

– Refinance Index Week/Week -12.0%. Previous weeks were -12.0%, -8.0%, +3.0%, +0.3%, +5.0% and +6.0%.

– Composite Index Week/Week -8.8%. Previous was -9.8%, -7.3%, +7.0%, +1.8%, +0.2%, +4.8%, +4.5%.

Sharply higher rates have devastated refinance applications.  Rates are the highest they have been this calendar year. Purchase applications are a leading indicator of sales and have been rather flat.

Chain Store Sales (week ended 5/25/2013)

ICSC-Goldman

– Store Sales Week/Week  -0.9%. Previous was 0.2%

– Store Sales Year/Year  +2.8%. Previous was 3.1%.

Redbook

– Store Sales Year/Year +2.7%. Previous was +2.4%.

The Consumer Metrics Institute Absolute Demand Index http://www.consumerindexes.com/ is a measure of online discretionary spending and shows a noticeable increase for the past 5 reported days.

The general picture of these metrics of consumer spending is still one of modest gains.