Last week’s economic news included National Association of Home Builders / Wells Fargo (NAHB) Housing Market Index and Commerce Department reports on Housing Starts and Building Permits, the post-meeting statement of the Fed’s Federal Open Market Committee (FOMC), and Fed Chair Janet Yellen’s scheduled press conference.
NAHB: Home Builder Confidence Hits 9 Month High
Home builder confidence in housing market conditions is growing in spite of a planned merger between two builders and related cost-cutting efforts. According to the NAHB’s the home builder index posted a reading of 59 in June as compared to an expected reading of 55 and May’s reading of 54. Any reading over 50 indicates that more builders are confident about housing markets than those who are not. June’s reading was the 12th consecutive month for readings above 50.
The NAHB index is composed of three assessments of market conditions. The reading for current market conditions was seven points higher at 65; builder confidence in current market conditions rose by 6 points for a reading of 69 and the reading for buyer traffic in new single-family housing developments rose five points to a reading of 44.
Regional results for builder confidence were also positive, with three of four regions posting gains in the three-month rolling average of builder confidence. The South posted a gain of three points to a reading of 60; the Northeast region also gained three points for a reading of 44. The West gained two points for a reading of 57 and the Midwest’s reading dropped by one point to 54.
Housing Starts Drop, Building Permits Increase
According to the Commerce Department, Housing starts fell in May while building permits rose. The reading of 1.04 million housing starts was lower than the expected number of 1.08 million starts and April’s reading of 1.17 million housing starts. Analysts note that apartment construction is heating up as fewer families are buying homes. Tight lending standards and concerns about stable job markets continue to keep would-be home buyers from buying homes.
Building permits in May rose from April’s reading of 1.14 million to 1.28 million permits issued. This report includes all types of building permits. David Crowe, chief economist for the National Association of Home Builders noted that the demand for rental units in large metro areas was fueling the pace of permits for multi-family housing.
Fed: No Date Set for Rate Hike; Analysts Predict Rate to Rise in Fall
The Federal Reserve’s FOMC statement and Fed Chair Janet Yellen’s press conference did not provide a date for raising the target federal funds rate, but suggested that most members approved of a rate hike before year-end. While Chair Yellen characterized a rate hike as positive in terms of providing better yields on savings accounts, a rate hike would also lead to higher rates for consumer loans and mortgages.
Mortgage Rates, Jobless Claims Lower
Weekly jobless claims fell to 267,000 new claims filed, a reading much lower than expectations of 275,000 new claims filed and the prior week’s reading of 279,000 new jobless claims filed. Analysts said that the lower reading indicates a healthier labor market.
Mortgage rates fell across the board last week. Freddie Mac reported that the average rate for a 30-year fixed rate mortgage fell by four basis points to 4.00 percent; the average rate for a 15-year fixed rate mortgage fell by two basis points to 3.23 percent and the average rate for a 5/1 adjustable rate mortgage dropped one basis point to an average rate of 3.01 percent. Average discount points were 0.70 percent for a 30-year fixed rate mortgage, 0.50 percent for a 15 year mortgage and 0.04 percent for a 5/1 adjustable rate mortgage.
What’s Ahead
This week’s scheduled economic news includes reports on new and existing home sales and FHFA’s monthly home price report. Reports on consumer spending and consumer sentiment will also be released along with Freddie Mac’s mortgage rates survey and weekly jobless claims.
House fires can break out for a wide range of reasons, and these include everything from grease fires while cooking in the kitchen to lightning striking the home. They can cause a significant amount of property damage as well as personal injury or even loss of life, so preventing them and knowing how to properly respond if a fire does break out are important. Whether buying a new home or residing in an existing home, everyone can benefit from learning more about fire safety rules.
The Federal Open Market Committee (FOMC) of the Federal Reserve did not move to increase the Fed’s target federal funds rate, which is currently 0.00 to 0.250 percent. Although the committee acknowledged further progress toward achieving the Federal Reserve’s dual goal of maximum employment and an inflation rate of two percent, committee members indicated that they want to see further improvements in both areas before raising the federal funds rate.
Many people make the decision to move from the country or the suburbs into the heart of the downtown area for a number of reasons, such as to enjoy proximity to work or to enjoy the urban lifestyle. With the higher cost of real estate in central urban areas and with real estate space at a premium, many who make the decision to relocate will need to downsize from a larger house to a smaller condo or apartment. While this can be challenging, it can be accomplished by following a few steps.
Finding the perfect home to purchase is easier said than done, and savvy home buyers understand the importance of researching the neighborhood as well as the home. All home buyers have unique things that they are looking for in an ideal neighborhood, and these factors will play a major role in how enjoyable a homeowner’s living experience is. Those who are shopping for a new home this summer may focus on a few points to find the perfect neighborhood to live in before deciding which home to purchase in that community.
It can be frustrating to deal with dead zones with your wireless and cellular coverage while you are out and about. However, overcoming dead zones in public areas may be as simple as relocating to a different area in a building or walking to a new location. Dead zones may also be present in residential homes and apartment buildings. If you have a dead zone in your home, this issue can easily cause you considerable frustration on a daily basis, and you may be wondering what steps you can take to overcome the problem.
When a homeowner is preparing to sell a home, it can be beneficial to determine the target audience that is most likely to be interested in the property as an important initial step. In some cases, it is advantageous for a homeowner to position a home as a great rental property or investment property, but this requires the right strategy. By adopting a few niche marketing steps, homeowners can work with their trusted real estate agent to market a property appropriately.
When a homeowner makes the decision to sell his or her property, it is most common for a skilled real estate professional to provide valuation services so that a reasonable asking price can be established. While the asking price may seem fair to the homeowner, the fact is that not all properties will sell at the original asking price. There are several instances when a homeowner may need to consider accepting a bid that is below the asking price.
One of the most common questions homeowners have before listing their home for sale relates to the selling price. Understanding the value of the home is about far more than just comparing the square footage of the space with other homes that have recently sold in the area. While there are many factors that will play a part in a selling price, location is an important factor for several different reasons.