MBA Purchase Index and Early Read on September Home Sales

From Calculated Risk we see a couple of interesting tidbits on housing. First, the weekly MBA purchase index had a rough week, dropping 8.5%. There's apparently a change in FHA standards related to this. Does anybody happen to know what that is?

Then, September home sales seem to have picked up a bit from August. A 4.5 million SAAR will register as a big percentage increase, but in truth that's still a horridly weak number and will leave inventories at the point where price reductions are likely. Inventories much above 8 months of sales usually lead to some measure of price reductions. 

Still, combine this with auto sales that were slightly up and decent retail sales and we at least aren't seeing the relapse in consumer spending many had feared. From the larger perspective, I'm still not seeing the evidence of a double-dip in the broad economy.