Eye On Housing
The housing sector entered a slow patch as the summer ended, one made worse by the economic uncertainty produced during the partial government shutdown. With the shutdown ended — for now — and a federal debt ceiling extension in place until February, home sales are suffering due to lower affordability, increases in interest rates from early fall, and general uncertainty…. Read More ›
Tag Archive for ‘eye on the economy’
Eye on the Economy: Builder Confidence Declines in October
With the government shutdown and debt ceiling debate resolved – for the next three months – it is clear that the political drama in Washington caused a drop in consumer confidence, which in turn added another headwind to the housing sector and the overall economy. This in turn affected builder confidence. The October NAHB/Wells Fargo Housing Market Index fell two… Read More ›
Eye on the Economy: Government Shutdown Adds to Uncertainty
Recent data concerning consumer and builder confidence suggest that at the end of the summer a pause occurred with respect to economic improvement. Adding to this is the uncertainty associated with the shutdown of the federal government. Besides the direct impact from lost or delayed government services, the shutdown is also a warning concerning the impending political debate regarding the… Read More ›
Eye on the Economy: Builder Confidence Pauses in September
The September NAHB/Wells Fargo Housing Market Index held steady at 58, the same level as the one-point downwardly revised August reading. The underlying components of the HMI were mixed. Future expectations declined to 65 from 68 in August and traffic rose one point to 47 from an upwardly revised 46. Housing starts have not improved as fast as the index… Read More ›
Eye on the Economy: Home Sales Slip in July
New and pending existing homes sales in July disappointed analysts with monthly declines, but are not indicative of a larger retreat for the overall recovery in housing. Demand for homes will continue to grow with labor market expansion, unlocked pent-up demand, and an improving overall economic environment. For builders, low inventories point to continued growth in housing starts. And housing… Read More ›
Eye on the Economy: Improving Picture for Remodeling
Data revisions and NAHB survey data characterize a brighter environment for the home improvement sector. The NAHB Remodeling Market Index (RMI) rebounded in the second quarter of 2013, bouncing back up to the post-2004 peak of 55 reached at the end of 2012. A level above 50 indicates more remodelers report good market conditions than poor. After a period below this… Read More ›
Eye on the Economy: New Home Sales Hit Five-Year High
Economic and housing data continue to describe a modest recovery for housing that will lead to higher levels of construction activity in the years ahead. While some recent information illustrates that there will be ups and downs along the way, current fundamentals indicate rising demand and insufficient housing inventory. Mortgage interest rates have risen, but thus far there is no… Read More ›
Eye on the Economy: Rising Home Prices and Construction
Rising home prices and increasing residential construction have been the clearest signs of the housing rebound that took hold in 2012 and continues into 2013. Data from the start of the summer are consistent with these long-run trends, offering a bright spot in otherwise lackluster economic environment. Total private residential construction spending increased to a seasonally adjusted annual rate of… Read More ›
Eye on the Economy: Highlighting a Nation of Builders
Members of the nation’s home building industry visited Capitol Hill this week, highlighting both the economic value and future potential of the industry for job creation and economic growth and making the case on policy issues that could affect the industry: tax reform, housing finance reform, immigration reform and production credit. Because the home building industry is dominated by small… Read More ›
Eye on the Economy: Housing Starts Fall Back on Volatile Multifamily Data
The pace of total housing construction fell back in April due to a large swing in the rate of multifamily development. From the March annualized rate of 1 million starts, April saw a drop to an 853,000 annualized pace. Single-family construction declined only a small amount, however, with starts down from a 623,000 rate in March to 610,000 in April…. Read More ›