Daily Economic Update: Mortgage Purchase Applications, May 25, 2011

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 durable goods orders.

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  Mortgage applications rose 1.1 percent for the week ending May 20.
• The Purchase index advanced 1.5 from the previous week, and was 3.1 percent higher compared with a year ago. Refinancing activity rose 0.9 percent from the prior week.  Mortgage rates on a 30-year fixed mortgage increased from 4.60 percent to 4.69 percent during the week.
• New orders for manufactured durable goods declined 3.6 percent in April, to $189.9 billion. The figure represents a second decline in the last three months.
• Transportation equipment orders, which led the earlier growth, declined the most—9.5 percent.
• Businesses continue to ramp up their inventory levels—inventories of durable goods rose 0.9 percent, the sixteenth consecutive monthly gain.
• Manufacturers’ shipments of durable goods decreased $2.0 billion or 1.0 percent.
• As the figures indicate, April showed a slight moderation in manufacturing activity.