Existing Home Shortage Boosts New Home Sales, Builder Confidence

The index that measures the confidence of new home builders in the market for their product inched slightly higher again in April. The National Association of Home Builders (NAHB) says the NAHB/Wells Fargo Housing Market Index (HMI) rose 1 point to 45 as sales continue to be supported by the lack of pre-owned homes available for sale. NAHB’s chief economist Robert Dietz said, “ Currently, one-third of housing inventory is new construction, compared to historical norms of a little more than 10 percent . More buyers looking at new homes, along with the use of sales incentives, have supported new home sales since the start of 2023.” “While AD&C [acquisitions, development, and construction] loan conditions are tight, there is not significant evidence thus far that pressure on the regional bank system has made this lending environment for builders and land developers worse. Builders note that additional declines in mortgage rates, to below 6 percent, will price in further demand for housing. “Nonetheless, the industry continues to be plagued by building material issues, including lack of access to electrical transformer equipment ,” Dietz said. The HMI is based on a survey conducted each month that asks new home builders about their perceptions of current single-family home sales and sales expectations for the next six months, ranking conditions as “good,” “fair” or “poor.” The survey also asks builders to rate the traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

April 17, 2023 Download our Mobile App: Download our Mobile App: Housing News Existing Home Shortage Boosts New Home Sales, Builder Confidence The index that measures the confidence of new home builders in the market for their product inched slightly higher again in April. The National Association of Home Builders (NAHB) says the NAHB/Wells Fargo Housing Market Index (HMI) rose 1 point to ... (read more) Mortgage Rate Watch Mortgage Rates Suddenly Near 1-Month Highs After bottoming out at the lowest levels in months in the first week of April, mortgage rates have been rising fairly quickly. As of this afternoon, you'd have to go back nearly a month to see a higher 30yr fixed rate from the average lender.&n... (read more) MBS Commentary Frustratingly Persistent Selling Pressure in Bonds Frustratingly Persistent Selling Pressure in Bonds Bonds got off to a rocky start well before the domestic session began. European bonds kicked off the selling spree, but most of the weakness arrived af... (read more) Rob Chrisman Processing Analysis, Subservicing, Pre-Qual Products; Webinars and Training A friend of mine who lives in her own unit in a mobile home park was telling me that her rent is about to go up by a huge amount, and said that, “That Fannie Mae and Freddie Mac are behind it.” Correct or not, Freddie Mac and Fannie Mae don’t need th... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.61% +0.11% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.61% +0.11 0.00 15 Yr. Fixed 6.00% +0.07 0.00 30 Yr. FHA 6.25% +0.15 0.00 30 Yr. Jumbo 6.05% +0.05 0.00 5/1 ARM 6.72% -0.03 0.00 30 Yr. VA 6.26% +0.17 0.00 Updates Daily - Last Update: 4/17 15 Yr. Fixed Rate 6.00% +0.07% Rate Change Points Freddie Mac 30 Yr. Fixed 6.27% -0.01 0.00 15 Yr. Fixed 5.54% -0.10 0.00 Updates Weekly - Last Update: 4/13 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.30% -0.10 0.55 15 Yr. Fixed 5.78% -0.19 0.57 30 Yr. Jumbo 6.26% -0.10 0.42 Updates Weekly - Last Update: 4/12 MBS / Treasuries UMBS 30YR 5.0 98.86 -0.53 Price / Yield Change MBS UMBS 5.0 98.86 -0.53 UMBS 5.5 100.33 -0.41 GNMA 5.0 99.28 -0.44 GNMA 5.5 100.48 -0.23 Pricing as of: 4/17 5:31PM EST 10 Year US Treasury 3.6042 +0.0892 Price / Yield Change US Treasury 2 YR Treasury 4.198 +0.099 5 YR Treasury 3.701 +0.097 7 YR Treasury 3.650 +0.092 10 YR Treasury 3.604 +0.089 30 YR Treasury 3.813 +0.076 Pricing as of: 4/17 5:31PM EST Latest Video Redfin reports the first annual rental decline in three years The current housing market is a more normalized correction than 2008, says ... Now is the opportunity for investors to get into homebuilding: Evercore's S... Homebuilder sentiment rises in April Around the Web Cleveland Fed High short-term inflation expectations could make it harder to bring down inflation than before the pandemic CNBC Homebuilder sentiment rises in April, as builders grab near record share of the market Calculated Risk Blog Housing April 17th Weekly Update: Inventory Decreased 1.3% Week-over-week Calculated Risk Blog Lawler on Demographics: New Population Estimates Incorporate Unprecedented Methodological Changes CNBC Today's homebuyers have their mortgage rate tipping point, and it's artificially low CNBC Treasury yields mixed as investors weigh economic outlook, await bank earnings CNBC Sweden's economic gloom goes from bad to worse as government predicts steeper GDP contraction Calculated Risk Blog Lawler: Early Read on Existing Home Sales in March; 3rd Look at Local Housing Markets in March cfpb CFPB Announces Revised Methodology for Determining Average Prime Offer Rates Calculated Risk Blog Q1 GDP Tracking: Around 2% CNBC 'Manufactured' debt ceiling crisis would damage U.S. economic rebound, key Treasury official says CNBC Chicago Fed President Goolsbee says recent reports show inflation is moving in the right direction CNBC ECB must 'carry on and act consistently' with interest rate hikes, policymaker says

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