New Construction On The Move:
Housing Starts increase in May and Building Permits hit a five month high.
U.S. housing starts rose more than expected and permits for future construction touched a five month high in May, a government report showed on Thursday.
The Commerce Department said housing starts rose 3.5 percent to a seasonally adjusted annual rate of 560,000 units, retracing almost half of April's steep decline. April's starts were revised up to a 541,000 unit pace, which was previously reported as a 523,000 unit rate.
Single-family home construction, which accounts for a large portion of the market, rose 3.7 percent.
New building permits unexpectedly rebounded 8.7 percent to a 612,000-unit pace last month, the highest level since December. Economists had expected overall building permits in May to fall to a 558,000-unit pace.
Permits were boosted by a 23.2 percent surge in the multi-family segment. Permits to build single-family homes rose 2.5 percent. New home completions climbed 0.4 percent to 544,000 units in May.
What Happened to Rates Last Week:
Mortgage backed securities (MBS) moved sideways last week which left 30 year fixed mortgage rates unchanged from last Friday to the prior Friday. But it was a wild ride with MBS selling off and mortgage rates rising in the middle of the week. This was primarily due to news that Germany and France were backing some additional support for Greece which may have delayed their default. But MBS rallied back to high levels on the weaker than expected Consumer Sentiment and Philly Fed data.
To see what you qualify for to purchase NEW CONSTRUCTION in the Northern Virginia (Arlington, Fairfax, Loudoun or Prince William Counties), give Hal a call today:
Brought to you by:
Harold (Hal)
Senior Loan Officer
Office: 800-333-3004 x 3441
Cell: 703-507-1572
hjohnson@embracehomeloans.com
10306 Eaton Place
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