July Housing Starts: Builders Rethink Future Plans
The rebalancing of the housing market is causing builders to rethink their future plans.
News
Mortgage Rates Increase as Markets Respond to Conflicting Economic Data
Mortgage rates increased last week, reversing direction after several weeks of declines. Comments from Federal Reserve members early in the week started moving interest rates higher, as they messaged that there is still much work to be done in taming inflation.
Mortgage Rates Drop on Slowing Economic Activity
Mortgage rates dropped significantly last week. The Federal Reserve increased the federal funds target rate by 75 basis points at the July meeting, in line with market expectations.
Mortgage Rates Continue Fall While Investors Price in Recession Risk
Mortgage rates continued to move lower last week. While mortgage rates are still significantly higher than the beginning of this year, they have declined over 0.50% from highs in mid-June that were over 6.00%. Economic indicators last week pointed to slowing growth and continuing increases in initial jobless claims.
June New Home Sales: Builder Slow Down Meets Declining Sales
A June decline in new home sales was to be expected given recent market shifts and reported slump in homebuilder sentiment, but the reported value of 590,000 new home sales in June was way under consensus.
Mortgage Rates Decline Despite High Inflation Indicators
Mortgage rates declined last week, even with very high inflation indicators. In economic data released last week, both consumer and producer prices showed higher than anticipated increases. But investors continue to price in a potential recession in 2023, which may force the Federal Reserve to begin lowering the federal funds target sometime next year.
June Existing Home Sales: Existing Home Sales Slip Further as Market Rebalances
As mortgage rates stay elevated and inflation burns on, affordability is still top of mind for many would-be home buyers, keeping demand on the sidelines and constricting home sales further than expectations suggested.
Monthly payments on a typical mortgage are more than 75% higher than they were in June 2019. Affordability challenges are tamping down competition in formerly red-hot markets, causing steep drops in pending sales in places like San Jose, Seattle, and Salt Lake.
