After opening mixed the major averages fell hard in morning trade entering the final hour with large losses once again. That said this correction is increasingly looking as if it has legs, based on extensive internal damage.
The Mortgage Bankers Association reports that its mortgage activity index gained 4.9% last week. Refi’s jumped 9.7%, purchase apps advanced 2%. The 30-year contract rate for a conforming loan increased to 5.01% joining conventional loans above the psychologically significant 5% level.
New home sales missed expectations substantially in September falling 5.5% to 553,000 units annualized, a figure 13.2% lower than a year ago. A 4th consecutive decline, and the 5th in the last 6-months. August sales were revised sharply lower as well. The Midwest was the only region to see sales advance, the Northeast and West both posted double digit sales declines. Month’s supply jumped to 7.1 a figure that will put meaningful downward pressure on prices. The median price fell 2.5% for the month to $315,900, 3.5% lower than a year ago.
The Federal Housing Finance Agency or FHFA reports that it’s purchase only home price index slipped .3% in August to a 6.1% gain from a year ago. At the regional level the Pacific saw prices increase .8% for the month and 7.3% from a year ago. Incoming real estate related data is soft and getting softer.
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