U.S. Economic Mash-Up: Mortgage Applications Fall, Durable Goods Orders and Services

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U.S. Economic Mash-Up: Mortgage Applications Fall, Durable Goods Orders and ServicesU.S. home mortgage applications declined last week, with both applications for purchase and refinancing declining, according to the Mortgage Bankers Association.

MBA’s seasonally-adjusted gauge of mortgage application trends, which incorporates refinancing and house purchases, declined 1 percent in the week through June 20. The index of refinancing applications plunged 0.9 percent while that for home purchases declined 1.2 percent.

The rates for fixed 30-year mortgage averaged 4.33 percent last week, much lower than 4.36 percent recorded the previous week. The survey reviews at least 75 percent of U.S. retail home mortgage filings.

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Separate data showed that orders for durable manufactured items in the U.S. unexpectedly plunged in May, indicating that the economy may not grow as fast as expected, despite another set of data showing businesses plan to spend more on capital investment.

Orders for long-lasting goods fell 1.0 percent after demand for machinery, transportation, computers and other electronic products, defense capital items, electrical appliances, equipments and components tumbled.

Overall orders for durable goods had accelerated by 0.8 percent in April due to more orders for defense equipment.

Non-defense capital item orders adjusted for aircraft, which signals how businesses intend to spend their money on capital goods, rose 0.7 percent. This compares with a decline of 1.1 percent posted in April.

Another report showed that U.S. services sector grew by the quickest pace in over 4 ½ years, as business activity increased.

Markit Economics reported that its preliminary Purchasing Managers Index rose to 61.2 this June, the most since October 2009, up from 58.1 in May. A figure above 50 shows growth in economic activity. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com