MBA Purchase Applications 501.6
(Econoday.com) - The Mortgage Bankers refinancing index jumped 52 percent to 3,327.3 in the week ended January 16, an enormous gain tied to the sharp decline in mortgage rates. Thirty-year mortgage rates, as tracked by Freddie Mac, fell more that 20 basis points to 5.66 percent last week, the lowest rate since July.
But refinancing is only half the story. The Mortgage Bankers purchase index jumped 13 percent to 501.6, the highest reading in the 13-year history of the survey!
Lower interest rates, the result of the weak employment report at the beginning of the month, have apparently reignited the housing market. If sustained, increased refinancing will deepen the pockets of consumers while increased home buying will add to the nation's wealth. Though the report is largely overlooked, it points to gains for stocks. If refinancing once again disrupts the mortgage-backed securities market, the report could point to dislocations in the bond market.
ICSC-UBS Store Sales -0.7%
(Econoday.com) - Cold weather in the Northeast and a lack of post-holiday clearance sales pushed sales down 0.7 percent at the nation's discount and department stores in the week ended January 17, according to the ICSC-UBS weekly chain store report. The report said the lack of clearance sales reflects strong inventory management at retailers and healthy sales during the holiday. Nevertheless, the year-on-year pace sank to 3.9 percent in the week, the slowest rate since August.
Housing Starts 2.088 Million
(Econoday.com) - Housing starts rose 1.7 percent in December to a higher-than-expected rate of 2.088 million, the strongest monthly showing in 20 years! For the full year, housing starts rose 8.4 percent to 1.848 million, the strongest showing in 25 years! Permits rose 3.3 percent in the month to 1.924 million, pointing to even stronger building ahead.
But there were mild negatives. October and November data were revised slightly lower, while starts for single-family homes, which are especially sensitive to interest rates and are closely watched by the Federal Reserve, slipped 0.6 percent in the month. Note that December's gains were led by an 11.6 percent surge in multi-family dwellings.
Redbook +0.1
(Econoday.com) - Redbook reported a soft 0.1 percent rise in the pace of discount and department store sales for the month-to-date period ended January 17 compared with December. The year-on-year pace for the week was up 3.4 percent, down from a 3.8 percent pace in the prior week. The report said cold weather in the Northeast raised demand for warm clothing and other seasonal items. Redbook together with the ICSC-UBS report released earlier this morning suggest that consumers have taken a bit of a shopping break, understandable given cold weather in the Northeast and the modestly heavy holiday shopping season.
04.01.21 08:54 #