Mortgage Purchase Index Declines
For week ending 5/18, the Mortgage Bankers Association reported Mortgage Purchase Index declined for the second week in a row falling 2% week to week. As reminder this is a leading indicator for housing starts & sales. The decline itself is that worrisome as in the past it has had weak periods only to rebound. However, its coinciding with higher interest rates which all indicators point to them continuing to rise thru 2018. Economic activity is expected to pickup in 2Q18 & 2H18 tied to tax cuts which recent manufacturing data confirms so rising rates should be norm thru 2018. Its interesting that the Commerce Department for April reported New Home Sales that were weaker than expected (but still growing) and that higher priced home appreciation occured faster than lower priced homes. This marks a reversal of trends that have been in place quite some time. To gain from our uncommon insights please contact us or sign up for email updates via https://www.charlotteconsultantservices.com/news-update.