Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights mortgage purchase applications and retail sales.

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  • Mortgage applications fell 6.7 percent for the week ending April 8, following the fourth consecutive week of interest rate increases.
  • Purchase applications were down 4.7 percent from the prior week and 11.4 percent lower compared with a year ago. Meanwhile, the Refinance Index declined 7.7 percent as mortgage rates on a 30-year fixed mortgage rose to 4.98 percent.
  • The weekly data does not account for the rising number of cash buyers.  According to the March REALTORS® Confidence Index, cash buyers accounted for 35 percent of transactions.
  • The Census Bureau’s monthly advance report of retail sales registered a 0.4 percent increase for March. Retail sales also gained on a yearly basis, rising 7.1 percent from March 2010.
  • The monthly advance was driven by sales growth for items such as furniture, gasoline, building materials, appliances and electronics.
  • Sales of motor vehicles and parts were down from last month 1.7 percent, but up 10.0 percent compared with a year ago. On a year-over-year basis, sales at gasoline stations increased 16.7 percent.
  • In a separate report, the Census Bureau also released data on manufacturing sales and inventories for February. Manufacturers’ sales rose 0.2 percent in February compared with the previous month, and 10.9 percent year-over-year.
  • Manufacturers’ inventories gained 0.5 percent from January 2011 and 9.1 percent from a year ago.
  • Growth in manufacturing activity signals a continuing strengthening of the economy.