Tag Archive for ‘home building’

Household Balance Sheets Continue Improvement in 3rd Quarter

During the third quarter, household balance sheets moved forward with increases in household net worth, declines in debt, and a small drop in the personal savings rate. These are favorable improvements that will help housing demand in 2013. To evaluate the status of household balance sheets, NAHB has been tracking two key economic variables that are critical for a robust and… Read More ›

Producer Prices in November – Energy Price Declines Push Overall Prices Down – Little Relief For Home Builders

The Bureau of Labor Statistics (BLS) released the Producer Price Indexes (PPI) for November. Once again energy prices are the main driver. The PPI for finished goods declined 0.8%, led by a 4.6% decline in the energy index. Core producer prices (i.e., excluding food and energy) rose 0.1%. Historically, core prices have been relatively stable, averaging monthly increases of 0.2%,… Read More ›

National Data Suggest Household Deleveraging Of Credit Card Debt

The Federal Reserve Board recently reported that consumer credit outstanding rose in October on a monthly seasonally adjusted basis. An analysis of the release by NAHB illustrated that the expansion in consumer credit outstanding in 2011 and 2012 reflected growth in auto and student loans while credit card debt fell. This decline in credit card debt outstanding had begun prior… Read More ›

Newly Proposed Rules Could Raise Rates on Consumer Mortgages and Price Out Households

On balance, the residential housing market has been improving in recent months, but the pace of recovery is partly restrained by frictions in the mortgage market. Against this backdrop, U.S. regulators have proposed comprehensive new regulatory capital requirements for U.S. banking organizations.  These newly proposed rules will serve to implement Basel III, the most recent revision to international bank regulatory… Read More ›

NAHB MVI Indicates Healthy, Stable Market for Existing Rental Apartments

In the third quarter of 2012, NAHB’s Multifamily Vacancy Index (MVI) improved 3 points to 33, largely offsetting the previous quarter’s 5 point swing in the other direction.  The MVI is a measure of property owners’ sentiment about vacancies in existing rental apartments, so lower numbers are better. After hitting a record high of 70 in the second quarter of… Read More ›

Construction Job Openings Spike in October

October data from the Job Openings and Labor Turnover Survey (JOLTS) indicate that the number of open positions in the construction sector increased significantly, reaching levels and rates last seen in 2007.  While one month of preliminary data needs to be taken with caution, increases in housing construction suggest that employment levels should be higher than other data sources suggest. For the economy as… Read More ›

Despite the Recent Increase, Credit Card Debt Outstanding Remains On A Downward Path

According to the Federal Reserve Board, consumer credit outstanding increased at a seasonally adjusted annual rate of 6.2% in October, an acceleration of 0.8 percentage points over September’s growth rate. Unlike September, the October increase in consumer credit outstanding, which excludes loans secured by real estate, reflects growth in both revolving and non-revolving credit. In October, revolving credit expanded by… Read More ›

Credit Still Tight, Although Builders Report Slight Improvement

Availability of new loans for acquisition, development, and construction (AD&C) has finally started to improve slightly, according to NAHB’s survey on AD&C financing for the third quarter  of 2012.  The overall net bank tightening index calculated from the AD&C survey dropped from +6.0 in the second quarter down to -4.3.  The way the index is constructed,  negative numbers indicate easing… Read More ›

AD&C Lending During the Third Quarter

Despite less than robust economic conditions, home building economic data have been fairly positive for 2012. For example, the level of residential construction spending is at a four-year high. However, one factor holding back an even stronger rebound in home construction is the lack of accessible Acquisition, Development and Construction (AD&C) loans. While it appears the period of dramatic declines of the outstanding stock of AD&C loans… Read More ›