Highlights
Housing demand appears to have stalled based on mortgage application data from the Mortgage Bankers Association that show the purchase index at 400.7 in the Feb. 9 week, down from 404.7 in the prior week and at a four-week average of only 404.0. The index has been edging lower, not higher, since the beginning of the year -- a result which will deflate optimism that the worst of the housing slowdown has passed. Tomorrow's NAHB housing market index is an important release that will help confirm whether the housing market is still sputtering.

Loan rates were steady in the week, averaging 6.24 percent in the week for 30-year mortgages vs. 6.23 percent in the prior week. The refinancing index rose 4.5 percent in the week to 2,031.7 with refinancings making up 46.1 percent of total applications, the same rate as the prior week.