Latest housing starts data is good for mortgage rates
Typically, good economic data is bad for mortgage rates, especially in this environment. But added supply is a positive.
Typically, good economic data is bad for mortgage rates, especially in this environment. But added supply is a positive.
MBA estimates new single-family home sales were running at an annualized pace of 725,000 units in January, up 13% from the December rate of 641,000 units. On an unadjusted basis, there were an estimated 63,000 new home sales in January, an increase of 40% from 45,000 new home sales in December. “However, activity was still … [Read more…]
Once the housing completion data looks better, the growth rate of rent â which is the biggest driver of core CPI â can cool down.
The homebuilders got lucky in the current recession since they don’t have to compete with millions of existing homes.
Homes were started at an estimated annual pace of 1.309 million in January, down 4.5% month over month, according to a report released Thursday by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development (HUD).
We all need to hope that builders can get the multifamily units onto the market for next year to drive rent inflation lower and lower.
Mortgage rates are falling and builders are offering incentives to buyers, but that wasnât enough to prop up new home sales in 2022.Â
A slowing housing market led homebuilders to pull back, starting just 1.53 million housing units in 2022, down 3% from 2021.
The Census Bureau’s housing starts report for December shows that housing completions are still too slow and we are running out of time.
A lot of people have been saying a record number of houses is being built in the United States right now and those houses will hit the market soon causing inventory to spike. The truth is there are a record number of “properties under construction” right now but there is much more to the story … Read more