Daily Newsletter: New Home Inventory Rises 58% Year-Over-Year

New home sales finished the year less spectacularly than they started it, but the 11.9 percent month-over-month increase was the best since last March. The U.S. Census Bureau and Department of Housing and Urban Development reported that newly constructed homes sold during the month at a seasonally adjusted annual rate of 811,000 compared to a revised rate of 725,000 (from the 744,000 originally reported) in November. The December sales were 14.0 percent below the annual rate of 943,000 in December 2020. Sales rose the following month to 993,000 which proved to be the high point for 2021. [newhomesall] Analysts polled by both Econoday and Trading Economics had forecast the month’s sales at an annual rate of 760,000 units. Predictions from Econoday ranged from 710,000 to 800,000. On a non-adjusted basis there were 57,000 new homes sold during the month compared to 51,000 in November and 63,000 the prior December. New home sales across all of 2021 totaled 762,000 new homes, a 7.3 percent decline from 822,000 total sales in 2020. The median price of a home sold during the month was $377,700 and the average was $457,300. In December 2020, the relative numbers were $365,300 and $401,700. [newhomeprices] Inventories have improved substantially this year. In December 2020 only 299,000 new homes were on the market, a 3.8-month supply. At the end of the year the inventory had risen to 403,000 available new homes, an estimated 6.0-month supply. However, only 39,000 of those homes were completed and construction on a quarter was only in the permitted stage. At the end of November, the inventory was estimated at 6.6 months at the then current sales pace.

January 26, 2022 Housing News New Home Inventory Rises 58% Year-Over-Year New home sales finished the year less spectacularly than they started it, but the 11.9 percent month-over-month increase was the best since last March. The U.S. Census Bureau and Department of Housing and Urban Development reported that newly const... (read more) Housing News Refi Applications Plunge to Two-Year Low as Rates Surge Even for a week containing a holiday, last week was a bad one. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, fell 7.1 percent on a seasonally adjusted basis from one week ea... (read more) Rob Chrisman Company Sponsored Webinars; Vendor Products; Apps Drop; Bonds Tread Water to vendors; last week's apps drop One conversation topic not in the hallways here at the MBA’s Independent Mortgage Banker Conference in Tennessee is the death of the original voice of Charlie Brown. The huge cost of health care is, however, and lenders can lower costs by negotiating... (read more) Mortgage Rates Mortgage Rates Remain Exceptionally Stubborn Ahead of Fed It's a tale as old as time for those who closely follow the day to day gyrations in the mortgage market. Bond volatility forces lenders to raise rates fairly quickly. Lenders then wait for market gains AND stability before adjusting rates back toward previous levels. Even then, rates remain slightly higher than the bond market says they s... (read more) 30 Yr. Fixed Rate 3.74% +0.08% Rate Change Points Mortgage News Daily 30 Yr. Fixed 3.74% +0.08 0.40 15 Yr. Fixed 2.97% +0.05 0.40 30 Yr. FHA 3.38% +0.05 0.00 30 Yr. Jumbo 3.35% +0.04 0.00 5/1 ARM 3.64% +0.04 0.50 Updates Daily - Last Update: 1/26 15 Yr. Fixed Rate 2.97% +0.05% Rate Change Points Freddie Mac 30 Yr. Fixed 3.56% +0.11 0.70 15 Yr. Fixed 2.79% +0.17 0.60 5/1 Yr. ARM 2.60% +0.03 0.30 Updates Weekly - Last Update: 1/20 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 3.72% +0.08 0.43 15 Yr. Fixed 3.00% +0.05 0.39 30 Yr. Jumbo 3.56% +0.02 0.38 Updates Weekly - Last Update: 1/26 MBS / Treasuries MBS Live Recap: Intraday Volatility But Mostly For Treasuries; Fed On Deck Intraday Volatility But Mostly For Treasuries; Fed On Deck Bonds began the day trading right in line with yesterday afternoon's higher yields (or lower prices). The first two hours saw a decent rally with trading levels nearly returning to yesterday's stronger range. A bounce in stocks just after 10am mad... (read more) UMBS 30YR 3.0 101.66 -0.63 Price / Yield Change MBS UMBS 3.0 101.66 -0.63 UMBS 3.5 103.94 -0.48 GNMA 3.0 101.70 -0.52 GNMA 3.5 102.97 -0.45 Pricing as of: 1/26 5:21PM EST 10 Year US Treasury 1.8691 +0.0931 Price / Yield Change US Treasury 2 YR Treasury 1.156 +0.129 5 YR Treasury 1.689 +0.116 7 YR Treasury 1.836 +0.113 10 YR Treasury 1.869 +0.093 30 YR Treasury 2.169 +0.050 Pricing as of: 1/26 5:21PM EST Latest Video Very broad committee support to raise target range for Federal funds rate, ... Chairman Jerome Powell delivers remarks after Fed leaves rates unchanged Shrinking the balance sheet is going to take some time, says Fed Chair Powe... Fed leaves rates unchanged as economic activity and employment strengthen Around the Web CNBC Federal Reserve points to interest rate hike coming in March Reuters U.S. goods trade deficit hits record high; retail inventories surge CNBC More than two-thirds of omicron cases are reinfections, English study suggests Calculated Risk Blog Comments on Case-Shiller and FHFA House Price Increases Reuters U.S. stock futures bounce ahead of Fed, oil gains on Russia-Ukraine CNBC CNBC Fed Survey forecasts more aggressive Fed, but better economic growth Reuters Wall Street resumes downward trend, oil up as Fed and Ukraine dominate money.usnews.com Analysis-Investors Worry About Hawkish Fed Hurting Growth, Even Theorize Over Next Recession CNBC Home prices surged in November, but at a slower rate than in October, S&P Case-Shiller says investing.com Nasdaq futures jump 2% after Microsoft's strong forecast; Fed decision looms NY Fed Household Survey Shows Sustained Rise in Reported andExpected Spending Growth money.usnews.com BOJ Debated Chance of Inflation Pick-Up Towards 2% as Price Hikes Broaden CNBC Oil rises to near $89 on Russia-Ukraine tension

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