Highlights
The purchase index from the Mortgage Bankers Association fell back to 422.2, down 10.6 percent in the Dec. 14 week but with the four-week average little changed and oddly strong at 440.4. MBA's data are likely being skewed higher as prospective home owners, seeking to improve their odds in a difficult market, file applications with multiple lenders. The report itself first mentioned multiple applications as a risk to the data back in August but not since. Yet weakness in yesterday's housing starts and weakness in Monday's housing index from the National Association of Home Builders do suggest that MBA's report is being distorted higher. Next major data on housing won't be until the new home sales report a week from Friday.

Other readings this morning included a 27 percent plunge in the refinancing index to 2,093.6 with refinancings making up 53.2 percent of all applications, down from 57.6 percent in the prior week. The report offered no explanation for the steep downswing. Mortgage rates were higher in the week with 30-year fixed loans averaging 6.18 percent, up 11 basis points from last week.