Tag Archive for ‘housing’

House Prices Record Annual Gains

Recently released data by Standard and Poor’s (S&P) and Case-Shiller indicates that its measure of house prices, the House Price Index – National, rose by 5.6% on a year-over-year not seasonally adjusted basis. This is the 27th consecutive month of year-over-year increases in the house price index. Over this period of more than two years, house prices have risen by… Read More ›

It’s All About Jobs

The Conference Board reported that the Consumer Confidence Index, which had increased the previous four months, declined in September, primarily because consumers judged current and future employment conditions less favorably. The Consumer Confidence Index declined to 86.0 in September from 93.4 in August. The share of consumers describing the current job climate as “plentiful” decreased to 15.1% in September from… Read More ›

Interest Rates Stay Flat on Loans for New Homes

Today, the Federal Housing Finance Agency (FHFA) reported that interest rates on home mortgages remained essentially the same in August. The same was true for the subset of mortgages used to purchase new homes. On conventional mortgages for new homes, the changes in August were both very small and offsetting. While the average contract interest rate increased by a single… Read More ›

Income Growth Key for Housing

Income growth is a key factor that promotes household formation, generating rental and home buying demand. A significant amount of pent-up housing demand exists, but for it to be unlocked additional gains in wages and other income sources must be realized. Household income typically follows a life-cycle pattern of growing with age, as skills and seniority grow, followed by later declines… Read More ›

Investors Pause Pending

Pending home sales decreased 1.0% in August, reflecting the gradual withdrawal of investors as the supply of distressed properties at bargain prices continues to decline. The Pending Home Sales Index (PHSI), a forward-looking indicator based on signed contracts reported by the National Association of Realtors (NAR), decreased to 104.7 in August from 105.8 in July. The August reading was down… Read More ›

Happy Days

September Consumer Sentiment reached a 14-month high, driven by favorable prospects for the US economy and personal income expectations. Thomson Reuters/University of Michigan reported that consumer sentiment reached 84.6 in September, up from 82.5 at the end of August. The September index reading was the second highest in the past seven years, and boosts prospects for new home construction. Rising… Read More ›

Housing’s Share of GDP: 15.5% for the Second Quarter

Housing is an important source of economic growth. As of the second quarter of 2014, housing’s share of gross domestic product (GDP) was 15.5%, with home building and remodeling yielding 3.1 percentage points of that total. Housing-related activities contribute to GDP in two basic ways. The first is through residential fixed investment (RFI). RFI is effectively the measure of the home… Read More ›

New Home Sales in August – Back on Track

In a joint release the Census Bureau and Department of Housing and Urban Development reported that newly constructed single family homes sold at a seasonally adjusted annual pace of 504 thousand in August, up 18% from July and 33% from August 2013. The supply of new homes available for sale inched up to 203 thousand from 201 thousand in July…. Read More ›