Eye On Housing
Refinance Activity Surges on a Year-over-Year Basis
Data from the latest survey of the Mortgage Bankers Association’s Weekly Application Survey show small year-over-year gains in purchasing activity and larger year-over-year gains in refinancing activity. The Primary Market Mortgage Survey indicated no change in the 30-year fixed rate mortgage (FRM) from the previous week, at a non-seasonally adjusted rate of 3.8%. However, two weeks ago, the FRM decreased… Read More ›
Recent Posts
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Housing Starts Relatively Flat in May
Total housing starts posted a 0.9 percent decrease in May (1.269 million units) compared to an upwardly revised April estimate of 1.281 million units, according to the joint data release from the Census Bureau and HUD. Relative to May 2018, total starts are 4.7 percent below the annual pace of 1.332 million units. Single-family production in May posted a monthly… Read More ›
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Builder Confidence Solid in June Amidst Growing Economic Uncertainty
Builder confidence in the market for newly-built single-family homes fell two points to 64 in June, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). Sentiment levels have held at a solid range in the low- to mid-60s for the past five months. While demand for single-family homes remains sound, builders continue to report rising… Read More ›
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Single-Family Permit Continues To Be Weak in April
Over the first four months of 2019, the total number of single-family permits issued year-to-date (YTD) nationwide reached 261,119. On a year-over-year (YoY) basis, this is a 6.5% decline over the April 2018 level of 279,302. Year-to-date ending in April, single-family permits reported growth only in the Northeast region of the country. The South, Midwest, and the West regions declined… Read More ›
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Homeowners Cautious with Lines of Credit Despite Equity Gains
The current release of the Federal Reserve’s Z.1 Financial Accounts report of the U.S., also known as the flow of funds report, shows a continuing increase in the market value of households in the U.S. Mortgage debt continues to expand as well, albeit at a much slower pace. The aggregate market value of houses represents assets on households’ balance sheets,… Read More ›
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CPI Growth Slows in May
In May, headline inflation rose slower relative to April, while core inflation remained unchanged. On a seasonally adjusted basis, the Consumer Price Index (CPI), released by the Bureau of Labor Statistics (BLS), rose by 0.1% in May, after a 0.3% increase in April. It was the smallest gain since January 2019. Excluding the volatile food and energy components, the “core”… Read More ›
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Building Materials Prices Flat as Gypsum, Lumber Slow Overall Growth
Prices paid for goods used in residential construction did not change in May (not seasonally adjusted) according to the latest Producer Price Index (PPI) released by the Bureau of Labor Statistics. As a result, building materials prices have grown much more slowly in 2019 (+3.1%) than they did over the same period in 2018, during which they increased 4.7%. Consistent… Read More ›
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Construction Job Openings Rise in April
Data from the BLS Job Openings and Labor Turnover Survey (JOLTS) indicate that construction job openings increased in April, consistent with the ongoing challenge of the availability of labor for builders. The estimated number of job openings in the construction sector increased to 404,000, a post-Great Recession high. Moreover, this marks a significant gain over the 258,000 openings estimated in April… Read More ›
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Consumer Credit Posts Highest Yearly Increase Since July 2017
The Federal Reserve’s latest G.19 Consumer Credit Report shows rising trends in consumer credit, excluding loans secured by real estate, through April 2019. As of April 30, 2019, consumer credit totaled $4.1 trillion on a seasonally adjusted basis, with $1.1 trillion in revolving debt1 and $3.0 trillion in nonrevolving debt2. The latest monthly year-over-year percentage increase of 5.3% in the… Read More ›
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Job Growth Softened in May
Total nonfarm payroll employment increased by 75,000 in May, while the unemployment rate remained at 3.6%. Residential construction employment increased by 5,200 in May, after a decline of 1,600 jobs in April. The total construction industry (both residential and nonresidential) gained 4,000 jobs in May. According to the Employment Situation Summary for May, released by the Bureau of Labor Statistics… Read More ›