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Nearly Half of Young Millennials Boomerang

Recent analysis of a survey of a segment of millennials, those born between 1980 and 1984, found that 90% moved out of their parents’ household by age 27. Of those moving out, however, over 50% returned. This return is sometimes referred as “Boomeranging,” moving out of a parental home and back. This experience has implications for household formation that are… Read More ›

Single-Family Construction Spending Increases 12.3% for the Year

Total private residential spending increased from the revised November estimate to a seasonally adjusted annual rate of $349.6 billion. The December month-over-month increase of 0.3% was driven by a large increase in the single-family component of private residential construction. Single-family spending increased 1.2% over the revised November estimate while multifamily spending increased 0.3%. Over the same period private construction spending… Read More ›

Rental Vacancy Rate at 20 Year Low

The rental market continues to be heat up with the national rental vacancy rate dropping to a 20 year low. At the same time, the homeownership rate continues to fall and is now at a low point not seen since the third quarter of 1994. The current first-time buyers share is 29% and remains well below the historical average of… Read More ›

House Price Growth Shows Signs of Normalizing

The recent release by the Federal Housing Finance Agency (FHFA) shows that its measure of house prices, House Price Index – Purchase Only, rose by 5.3% on a 12-month seasonally adjusted basis in November 2014. This marks the 34th consecutive month of year-over-year growth. Over this period of more than two-and-a-half years, house prices have risen by 19.0% and have… Read More ›

A More Robust Year for Housing in 2015

NAHB hosted an economic and housing outlook seminar at its International Builders’ Show in Las Vegas inviting Frank Nothaft, chief economist at Freddie Mac, and David Berson, chief economist at Nationwide Insurance, to join David Crowe to discuss the outlook for 2015. Here’s the highlights. A strengthening labor market, low interest rates, improving mortgage availability and growing pent-up demand will… Read More ›

Gasoline Prices Down 21% for the Year

The consumer price index fell for the second consecutive month due to a large decrease in the price of gasoline. On a seasonally adjusted month-over-month basis the consumer price index fell 0.4%. Over the past twelve months, prices on expenditures made by urban consumers increased just 0.8% before seasonal adjustments. The falling price of gasoline is positive for consumers in… Read More ›

Consumer Credit Outstanding Continues to Grow

According to the Federal Reserve Board, consumer credit outstanding expanded over the month of November 2014. However, the rate of expansion was slower in November than it was in October. On a seasonally adjusted annual rate basis, total consumer credit, which excludes housing related credit such as mortgages and home equity lines of credit, rose by 5.1%, $169 billion, over… Read More ›

Is it Easy to Obtain a Mortgage?

For many households, obtaining a mortgage is the most important step when seeking to purchase a home. As housing analysts, a natural question to ask when assessing the prospects for home buying is “how easy is it for households to obtain a mortgage?” The Federal National Mortgage Association (FNMA) or Fannie Mae attempts to shed light on this question with… Read More ›