MBA Purchase Applications Index 482.5
(Econoday.com) - The Mortgage Bankers purchase index rose 4.1 percent in the April 30 week to 482.5, its fourth straight rise and the best reading since mid-January.
The data suggest that rising interest rates may be stimulating housing demand, encouraging home shoppers to lock in rates now before they move yet higher. The results may confound early estimates for April's housing data, which begin with the housing starts report at mid-month.
The MBA refinancing index also rose, up 4.7 percent to 2,516.0. But the index remains about half as strong as in March, a less surprising effect of the recent rise in mortgage rates.
Thirty-year fixed rate mortgages rose to 6.01 percent last week, now up 63 basis points from the year's low in mid-March.
ISM Business Activity Index 68.4%
(Econoday.com) - The business activity index from the ISM non-manufacturing survey increased nearly three points in April to 68.4 percent, boosting the already high level even more than expected. The ISM survey showed strength among the various components. New orders increased nearly three points to 65.6; supplier deliveries were up to 58 percent; inventories jumped five points to 56.5 percent and even employment increased to 54.5 in April from 53.9 in March. The price index jumped three points to 68.6 percent in April from 65.7 percent. The rising price index may not suggest that inflationary pressures are percolating today, but it certainly indicates that inflation could become a concern if this index continues to rise in coming months.
04.05.06 14:00 #