Highlights
Housing demand may be soft but at least its steady according to the Mortgage Bankers Association's purchase index which slipped only slightly to 410.6 in the March 16 week, very near the four-week average of 407.9. Rates remain favorable, averaging 6.06 percent for 30-year fixed mortgages. Low rates have boosted refinancing demand though the refinancing index did dip back 4.5 percent in the week to 2,208.6.

The state of the housing market, now perhaps threatened by subprime fallout, remains a central uncertainty in the economic outlook. Yesterday showed strength in housing starts but weakness in permits. Existing home sales is on Friday's calendar.