Today's Economic Data Highlights

Just housing starts today, following this morning’s weekly report on mortgage applications, which showed a third consecutive decline in the purchase loan index as nobody even pretends the housing double dip is not here… Daily market ramp closes at 11:00 am when Sack Frost completes purchase of $6-8 billion in 2013-2014 bonds (and Apple stock).
 
The Mortgage Bankers Association’s index of mortgage applications rose 5.0% last week on the back of a 7.7% increase in applications for refinancing.  The purchase loan index fell 1.9%, the third consecutive decline.
 
8:30: Housing starts and permits for Dec…going nowhere?  Starts have settled into a range of (generally) 500k to 600k units at an annual rate (about 100k less than that for single-family units), from which they will probably move up only slowly until the excess supply of unoccupied homes is worked off.  Expectations for the December center on a median forecast of about -1%.  We expect no change.

On starts, median forecast (of 69) -0.9%, ranging from -8.1% to +5.9%; last +3.9%.
On permits, median forecast (of 50) +1.8%, ranging from -4.4% to +5.7%; last -4.0%.

11:00: $6 – $8 billion POMO of bond due 2013-2014. Must not allow downtick. Must not allow downtick. Must not allow downtick.

Via GS and ZH

Comments

[Oh regional Indian]

Here is a thought. If Fraudclosure is going to make house buying/selling such a tricky business, maybe it's new homes that will ultimately pick up the slack in demand? Which is there, no doubt.

Also, maybe the US will shift to soul-less Apartment living, even in wide open spaces, as opposed to McMansions?

Clearly a tectonic shift int eh US housing market, bubble or no bubble. Gated Apartment complexes, I can see that as a growth industry. Clean paperwork, clean start, low cost and soul-less.

ORI

http://aadivaahan.wordpress.com/2011/01/18/the-callousness-of-pornography/

[Sudden Debt]

fewer new house starts mean people are saving to BUY A EVEN BIGGER HOUSE!

THIS IS VERY BULLISH!!

Good enough to add at least +1% on the DOW!

Another one because it's not raining today = +1%

IS A RISE TODAY OF AT LEAST 2%!!!

IF THIS IS TO TECHNICAL FOR YOU, DON'T BOTHER JUST BUY THE DIP!*

WHOOHOOO!!

* not really...

[youngman]

Mortgage applications are like lottery tickets....many people try...few win....why not just report how many mortgages closed.....but that would be houses sold....I see a few jobs here to be cut...yes if the interest rates drop...apps will increase....but they still can´t be underwater on their house..or they have to come to the party with cash....