economy: New Home Supplies Keep Shrinking; Prices Pressured Higher
- 07/27/11 03:10 AM
<!-- .entry-meta --> Home builders are slowly reducing inventory. According to Census Bureau data, the number of new homes slid 1 percent from May. On a seasonally-adjusted, annualized basis, home buyers bought 312,000 newly-built homes last month. It’s the third straight month of falling sales and the headline data casts the Cary housing market in a negative light. Upon closer inspection, however, the numbers appear quite strong. First, sales are down marginally. Total units sold have dropped just 2 percent from the highs of the year. And, second, the number of newly-built homes for sale is down markedly from last year … (1 comments)
economy: Existing Home Sales Fall To 8-Month Low
- 07/21/11 02:17 PM
<!-- .entry-meta --> Home resales slipped for the 3rd straight month, according to data from the National Association of REALTORS®. The Existing Home Sales posted a 1 percent drop from May as the number of homes sold fell to a seasonally-adjusted, annualized 4.77 million units. It’s the monthly report’s lowest reading since November 2010. The report also showed the national supply of homes for sales rising to 9.5 months — also its highest reading since November 2010. Home Supply is the amount of time it would take to exhaust the complete home inventory at the current pace of sales. … (1 comments)
economy: What's Ahead For Mortgage Rates This Week : July 11, 2011
- 07/11/11 05:45 AM
Mortgage markets improved in roller coaster-like trading last week. And, not surprisingly, the week's two big stories were the same two stories roiling mortgage markets since March - Greece and Jobs. In both instances, rate shoppers won. Conforming mortgage rates in Florida improved for the first time in 3 weeks last week. Early in the week, mortgage rates fell as doubts resurfaced on the just-completed Greece aid package. Although an agreement had been reached by the Greek Parliament, investors are wondering if it's a bona fide solution, or delaying an inevitable default. Talk like this triggers a flight-to-quality, and last week, … (0 comments)
economy: Mid-Year Review : Were The Experts Right About The Market?
- 07/08/11 06:51 AM
The year is half-over. It's an opportune time to take stock of analyst predictions made at the start of the year, and to recognize that the "experts" can be wrong as often as they are right. For as much experience and authority an expert brings to the conversation, though, nobody can accurately predict the future. As such, there's often disagreement. Looking back to December, some housing analysts called for a market rebound this year; while others called for a fall. With respect to mortgages, some said rates had nowhere to go but up; while others expected more dips. As a layperson, how do you know who will be right? … (1 comments)
economy: Economy Expected To Have Added 80,000 Jobs In June
- 07/07/11 05:50 AM
Friday morning, at 8:30 AM ET, the Bureau of Labor Statistics releases its June Non-Farm Payrolls report. If you're currently shopping for a mortgage, or floating a mortgage rate, be prepared. Mortgage rates can change following the monthly report's release. Often, by a lot. More commonly called "the jobs report", Non-Farm Payrolls reports on the U.S. workforce by sector, summarizing its findings in terms of total workforce size, and as a national Unemployment Rate. Jobs are considered a keystone in the continuing U.S. economic recovery. More working Americans means: More consumer spending, a boost to businesses More tax collection, a boost … (3 comments)
economy: Pending Home Sales Unexpectedly Spike In May
- 07/02/11 03:18 AM
The summer housing market is heating up. According to data from the National Association of REALTORS®, the Pending Home Sales Index smashed analyst expectations, jumping 8 percent on a monthly basis in May. Wall Street calls were for an increase of just 0.5 percent. It was a surprise result that, coupled with the recent stronger-than-expected New Home Sales and Existing Home Sales readings, has sparked housing market optimism in North Carolina and nationwide. The biggest reason for the optimism is because of what the Pending Home Sales Index measures. In contrast to "traditional" housing data which reports on how housing performed … (0 comments)
economy: Home Values Climb 0.8 Percent In April
- 06/29/11 12:00 PM
Maybe homes in Raleigh are holding value better than we thought. Between March and April of this year, home values rose 0.8 percent nationally, according to the Federal Housing Finance Agency's Home Price Index. It's the index's first month-to-month improvement since May of last year. Values are down 19 percent since peaking 4 years ago. Private-sector data affirms the government's report. Tuesday, the S&P's Case-Shiller Index also showed home values higher by 0.8 percent in April, on a monthly basis. Led by Washington, D.C. and San Francisco, 13 of the Case-Shiller's 20 tracked markets showed improvement in April. In March, just … (0 comments)
economy: New Home Supplies Drop, And So Does Homebuilder Confidence
- 06/24/11 10:03 AM
On paper, the market for newly-built, single-family homes looks healthy. Last month, the number of new homes sold on an annualized, seasonally-adjusted basis tallied 319,000. The May reading is the second-highest of the year, and 6 percent above the current 12-month average. These are strong numbers in isolation. However, after accounting for the dwindling supply of new homes for sale as well, the figures look even stronger. In May, at the current pace of sales, the complete, national inventory of new homes for sale would have been sold in just 6.2 months. That’s the quickest pace in a year and … (0 comments)
economy: A Simple Explanation Of The Federal Reserve Statement (June 22, 2011 Edition)
- 06/23/11 08:00 AM
Wednesday, the Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent. The vote was 10-0 — the fourth straight unanimous vote for the nation’s Central Bank. In its press release, the FOMC said that the economy is recovering, although “somewhat more slowly” than what was expected. Labor markets have been weaker than anticipated and the Fed believes that is, in part, a result of higher food and energy costs, and supply chain disruptions as a result of “tragic events in Japan”. Some economic bright spots identified by the Fed include … (0 comments)
economy: Existing Homes Sales Slip In May
- 06/22/11 05:09 AM
Home resales slipped 4 percent in May, falling below the 5,000,000-unit mark on a seasonally-adjusted, annualized basis for the first time since February. April’s resales were revised lower, too. Analysts were surprised by the figures because it runs counter to the National Association of REALTORS® monthly Pending Home Sales reports. The association’s Pending Home Sales Index is purported to be a forward-looking indicator for the housing market because 80% of homes under contract close within 60 days and recent Pending Home Sales readings show an increase in “pending” homes. This month’s Existing Home Sales, however, fell flat. May’s drop in home resales wasn’t … (2 comments)
economy: What’s Ahead For Mortgage Rates : Week of June 20, 2011
- 06/20/11 08:13 AM
Mortgage markets improved last week as Wall Street managed news on both sides of the economic coin. There were several instances of higher-than-expected inflation – an event that tends to lead rates higher — but weak domestic jobs data and a soft manufacturing report suppressed the damage. Rates were also held low by ongoing issues in Greece. In Greece, the government is currently struggling to meet its debt obligations — despite a restructuring of existing debt negotiated in 2010. Without a plan for its new debt, though, Greece will likely to default on what it owes. Eurozone and international banking leaders … (1 comments)
economy: Housing Starts Climb Unexpectedly In May
- 06/17/11 06:40 AM
The housing market received a jolt of good news Thursday. The Commerce Department reports that Single-Family Housing Starts improved in May. As compared to April, last month’s Single-Family Housing Starts rose 4 percent to a seasonally-adjusted, annualized rate of 419,000 units, a figure slightly better than the 6-month average and the highest tally since January. A “housing start” is defined as a home on which new construction has started. In addition, Building Permits saw a boost in May, too, climbing nearly 9 percent overall. Building Permits are a gauge of future construction activity with 89 percent of permits leading to … (0 comments)
economy: Mortgage Rates Surge On May Retail Sales Figures
- 06/15/11 12:40 PM
The jobs market is recovering slower than expected, and so is housing. But neither condition has slowed U.S. consumers. According to the Census Bureau, Retail Sales rose for the 11th straight month in May. Excluding cars and auto parts, sales receipts climbed to $322 billion last month. It’s an all-time high and another example of the U.S. economy’s resiliency. Wall Street didn’t expect such results. As a result, mortgage rates worsened Tuesday. By a lot. The connection between Retail Sales and mortgage rates can be fairly tight in a recovering economy. Retail Sales accounts for almost half of all U.S. consumer … (0 comments)
Mortgage rates are falling, falling, falling. On a wave of uncertainty about Greece and its debt; and weaker-than-expected economic data at home, conforming 30-year fixed rate mortgage rates have fallen to levels not seen since December 2, 2010. Mortgage rates have dropped 8 weeks in a row. Not even last year’s Refi Boom produced an 8-week winning streak. This season’s streak is historic. The 30-year fixed rate mortgage now averages 4.49% nationally, down 42 basis points, or 0.42%, since early-April. For every $100,000 borrowed, that equates to a monthly savings of $25.24. Adjustable-rate mortgages have shed even more, giving … (2 comments)
economy: What’s Ahead For Mortgage Rates This Week : June 13, 2011
- 06/13/11 06:02 AM
Mortgage markets moved in feverish fashion last week, changing with extreme frequency, and eventually ending slightly worse on the week. Conforming mortgage rates fell to a 6-month low Wednesday but, by Friday, they had retreated higher. Last week marked just the second time in 8 weeks that rates in Raleigh increased. During that span, Freddie Mac reports that mortgage rates have dropped 42 basis points, or 0.42%. That equates to a monthly savings of $25.24 per $100,000 borrowed. One reason why mortgage rates have been dropping is that the economy is growing more slowly than projected. In a speech last week, … (0 comments)
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