This week’s market update!
Data from the National Association of Home Builders and also really great Mortgage Application numbers from last week.
Brian Manning with your weekly update, let’s get right to it.
So, Monday relatively quiet news day not really much to talk about there. Tuesday this week though we get the NAHB builders sentiment for the month of July so this measures in a range of 0 to 100 and it was down slightly on a month over month basis at 64 and this really measures many items, but kind of gauges how builders feel about going forward and their product in the housing market. So, slightly a disappointing number and if you really dive into this you look at what’s going on you can see that builders have fears about rising material costs and also potential tariffs that would be added onto the material cost. Any of these costs would have the cost of a home increasing and this would have to be passed down to the consumer as well, so we see a little bit of concerns there on the Builder side.
Wednesday this week, and actually Wednesday of every week, we get feedback on mortgage applications. This looks at what applications had taken place in the prior week, so on a year-over-year basis purchase applications for mortgages are up 7% and this is really amazing this see because on a year to year basis mortgage rates are five eighths of a percent higher & housing inventory is down so even with those two items still taking place, we’re still seeing an increase in purchase business!
We also got housing starts. This is new permits being filed by builders for the prior month. Housing starts were up 8.3% and what is also amazing is that they did a revision to the month even before that, and they were now up over 10%! So, the new construction side is currently seeing solid housing starts.
Thursday this week was slow news day & today pretty quiet news day as well, although it’s really nice to see stocks taking a breather. All the stock markets have been at an all-time high and kind of taking a breath right now. It’s really good to see, but other than that not much to report today.
Next week starts to heat up, we get a lot of housing data and we also have a Federal Reserve meeting and it’s unlikely that we’re going to see a Fed Rate hike, we’ll have to wait and see what happens, but I really wouldn’t count seeing that there.
Overall though, this week looks good. Bond markets were reacting favorably and kind of setting us up to see a slight reduction of mortgage rates.
I’m around a weekend if you have any questions. Let me know, I would love to help you and would truly love the opportunity to be part of your business.