The Mortgage Bankers Association reported this morning that purchase applications rose three percent in the week ending 5/24/2013. That follows declines in the previous two weeks of three and four percent, respectively. Rising mortgage rates, however, continue to damp refinancing activity; for the week, refinancing activity was down twelve percent. Yesterday’s jump in Treasury rates is almost certain to restrain mortgage applications going forward.
Yesterday, the Federal Reserve Bank of Dallas issued a mixed report on manufacturing activity.
In general, the report was negative, though some of the surveys metrics showed improvements. Production, Capacity Utilization, New Orders, Shipments and Wages and Benefits showed signs of improvement; while Company Outlook, General Business Conditions, Employment, Hours Worked and Prices Received for Finished Goods all showed declines. Eight percent of the companies surveyed reported hiring new workers, while 15 percent reported layoffs. Also worthy of mention is the fact that, on a M/M basis, raw material prices (i.e. Prices Paid for Raw Materials) rose 6.4 percent.
Though the economy is showing some signs of life, it is still licking its wounds from the damage caused by The Great Recession.
