Eye On Housing
Author Archives
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AD&C Financing Conditions Ease in 2017
Builders and developers responding to NAHB’s AD&C Financing Survey continue to report easing credit conditions for acquisition, development, and single-family construction loans and the pace of easing quickened. In the fourth quarter of 2017, the overall net tightening index based on the AD&C survey was -15.3, indicating net easing. All major categories of AD&C financing also recorded net easing, with… Read More ›
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Mortgage Rates Rise
The Federal Housing Finance Agency (FHFA) reported that contract mortgage rates rose by four basis points to 4.05 percent in January 2018. After falling to 3.93 percent following its February 2017 peak of 4.18 percent, rates on purchases of newly built homes have risen 12 basis points over two months to 4.05 percent. At this level, mortgage rates remain below… Read More ›
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Solid Fourth Quarter Economic Growth Confirmed
In its second estimate, the Bureau of Economic Analysis (BEA) reported that the nation’s economy, measured by real gross domestic product (GDP), grew by 2.5 percent in the fourth quarter of 2017 on a seasonally adjusted annual rate basis. The second estimate is 0.1 percent point less than the 2.6 percent growth rate recorded in the first or “advance” estimate…. Read More ›
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New Single-family Home Sales Start 2018 Lower
According to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, sales of new single-family homes fell by 7.8 percent over the month of January. The decrease in sales partly reflected an upward revision in the December estimate from 625,000 to 643,000. However, sales fell below the 600,000 level to 593,000. Despite the second consecutive decrease… Read More ›
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Inflation Steady with Growth in January
The Bureau of Labor Statistics reported that a measure of inflation, its Consumer Price Index – Urban Consumer (CPI), rose by 2.1 percent over the past 12 months, similar to the 12-month rate of growth recorded in December. Meanwhile, core inflation, which excludes the more volatile energy and food prices, rose by 1.8 percent, also matching its growth rate in… Read More ›
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Fed Survey Confirms Broader Economic Improvement, But Concerns Exist
Information provided by the Federal Reserve Board in its January 2018 release of the Senior Loan Officer Opinion Survey (SLOOS) indicates that lending standards on commercial and industrial (C&I) loans to large and medium-sized firms continue to ease on net. The continued easing in standards on C&I loans increase the stock of loans, which in turns fuels job creation. However,… Read More ›
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Interest Rates Rise
According to the Mortgage Interest Rate Survey produced by the Federal Housing Finance Agency, contract rates on 30-Year fixed rate mortgages ticked up one basis point in December 2017 to 4.01 percent. Information provided by Freddie Mac, a more commonly used series, showed a similar trend over the month of December with its contract rate on the 30-Year fixed rate… Read More ›
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Fed Stands Pat at Chair Yellen’s Final FOMC Meeting
In Janet Yellen’s final meeting as Chair, the Federal Open Markets Committee (FOMC or Committee) voted unanimously to maintain the federal funds rate, its short-term policy rate, at a range of 1.25 percent and 1.50 percent, a level it deems “accommodative”. According to estimates of financial markets expectations, this decision was widely expected. Calculations of the appropriate level for the… Read More ›
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Pending Sales Rise in December
According to the National Association of Realtors’ (NAR) Pending Home Sales Index (PHS), signed contracts for existing homes rose 0.5% nationwide over the month of December 2017. According to the NAR, the PHS, a leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos, and co-ops. Because a… Read More ›
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Economy Grows for 8th Consecutive Year
According to a release from the Bureau of Economic Analysis, the nation’s real gross domestic product (GDP) slowed to a seasonally adjusted annual rate of 2.4 percent in the fourth quarter of 2017. Despite the slowdown, GDP growth over all of 2017 accelerated to 2.3 percent, faster than the 1.5 percent rate of growth in 2016. The annual increase in… Read More ›