by Calculated Risk on 5/07/2014 07:02:00 PM

First, an update to an earlier comment:  The Mortgage Bankers Association (MBA) told me they have expanded coverage of the mortgage purchase index to include many smaller "purchase focused" lenders. The MBA doesn't believe their purchase index is "skewed" by large lenders who were focused on refinance applications.

Second, from Jon Hilsenrath at the WSJ: Yellen Offers Upbeat Outlook, but Points to Housing Risk

The fitful housing recovery poses one risk that could throw the Fed off track.

"The recent flattening out in housing activity could prove more protracted than currently expected rather than resuming its earlier pace of recovery," Ms. Yellen warned, dwelling on the housing slowdown more prominently than she or other Fed officials have in the recent past.

Her emphasis on this weak point in the recovery is notable because housing is highly sensitive to interest rates. If officials become more seriously worried about the pace of the housing recovery, they could decide to hold interest rates lower for longer.

Thursday:
• At 8:30 AM ET, the initial weekly unemployment claims report will be released. The consensus is for claims to decrease to 330 thousand from 344 thousand.

• Early, the Trulia Price Rent Monitors for April. This is the index from Trulia that uses asking house prices adjusted both for the mix of homes listed for sale and for seasonal factors.

• At 9:30 AM, Testimony by Fed Chair Janet Yellen, The Economic Outlook, Before the Committee on the Budget, U.S. Senate