| Composite Index - W/W Change | -1.2 % | -3.7 % |
| Purchase Index - W/W Change | -2.0 % | -3.0 % |
| Refinance Index - W/W Change | 1.0 % | -4.0 % |
A roughly 1 percentage point rise in mortgage rates the last three months, a rise that reflects expectations for Federal Reserve tapering of asset purchases, is a major factor holding down home sales right now, reflected in Monday's surprise decline in pending home sales. The first set of housing data to signal the rate effect way back in May was the Mortgage Bankers Association's weekly mortgage application report where the purchase index is down another 3.0 percent in the July 26 week. The index is up only 5.0 percent year-on-year compared to a 15 percent year-on-year pace for existing home sales and a nearly 40 percent pace for new home sales. At least these were the year-on-year readings as of June with purchase application data pointing to a slowing ahead for these year-on-year sales rates.
Source Bloomberg
