Mortgage applications jumped 13.9% last week with refinance up 18% to 58.4% of the total.  Purchases were up 9%. The data is good for housing but probably better for Main Street and bodes well for potential spending.  I've seen blips here and there for refinancing so that could help the economy although homes won't be piggy banks for a long time. More traction is also a sign of confidence and should help Main Street spending...a key component of the virtuous cycle. As for mortgage rates going higher they've been mostly sideways for a while even dipping more recently. Once we get a rate hike, there will be serious blip in applications.

https://www.mba.org/2015-press-releases/sept/rate-decreases-drive-mortgage-applications-increase-in-latest-mba-weekly-survey

Purchase was +9%

Refinance +18% to 58.4% of total from 56.2%

Data good for housing probably better for Main Street and potential spending.

As for mortgage rates going higher they've been mostly sideways for a while even dipping more recently.

Choppy trading is the word of the day with not much to provide strong direction. Biotech is bouncing today after more political comments on drug pricing and exclusivity. The topic is likely to remain a political football during the presidential campaign.

As the scandal over emissions grows, Volkswagen CEO Martin Winterkorn as stepped down.  The stock is up 5% on the news. An appointment is expected by the end of the week.  The fallout is not likely all known or priced in yet .

At midday the markets are treading water, hanging on as we expected ahead of Janet Yellen's remarks tomorrow.  The closing hour will be a tell once again, providing more clues to sentiment and direction than the open.