Builder Confidence Drops at Fastest Pace in 2 years

Homebuilder confidence may still be higher than almost any time before the pandemic, but it's now lower than any time since. The post-pandemic lows arrived abruptly with today's release of the Housing Market Index from Wells Fargo and the National Association of Homebuilders (NAHB). The month-over-month decline was the largest in 2 years and is one of only 3 other times that the index has fallen by 8 points since records began in 1985. Pain points for the housing market are no mystery with prices continuing to increase by roughly 20% year-over-year and mortgage rates hitting the highest levels since 2009 in recent weeks. The net effect is a massive hit to affordability that increasingly sidelines would-be buyers. NAHB notes less than half of new and existing homes are affordable for the average family. Things are even worse for first time and entry-level buyers. The builder confidence index has several components, and they can take turns influencing the headline number. These include current sales, expectations for sales over the next 6 months, and buyer traffic. All three dropped significantly, with a 10 point decline in the 6 month outlook edging out the 9 point drop in buyer traffic and the 8 point drop in current sales.

May 17, 2022 Download our Mobile App: Download our Mobile App: Housing News Builder Confidence Drops at Fastest Pace in 2 years Homebuilder confidence may still be higher than almost any time before the pandemic, but it's now lower than any time since. The post-pandemic lows arrived abruptly with today's release of the Housing Market Index from Wells Fargo and the Natio... (read more) Mortgage Rate Watch Mortgage Rates Moving Back Up Mortgage rates moved higher today at the fastest pace in 2 weeks. Part of the reason the size of the jump was the fact that rates have done quite well since hitting the last major high early last week. In other words, there was a bit of a... (read more) MBS Commentary MBS Live Recap: Another Head Fake Comes and Goes With Help From Data and Powell Another Head Fake Comes and Goes With Help From Data and Powell As of yesterday, bond yields looked like that at least had a chance to remain under the 2.92% pivot point after breaking below it for the f... (read more) Rob Chrisman LO Training, Database Mining, Digital, PPE, Non-QM Products; Training and Events Keeping things in perspective, last Thursday the White House announced a raft of measures to alleviate the ongoing baby formula shortage, which has worsened in recent weeks because of a major product recall and supply chain problems. Here in Manhatta... (read more) Mortgage Rates Mortgage Rates Moving Back Up 30 Yr. Fixed Rate 5.45% +0.08% Rate Change Points Mortgage News Daily 30 Yr. Fixed 5.45% +0.08 0.40 15 Yr. Fixed 4.84% +0.06 0.40 30 Yr. FHA 5.05% +0.05 0.00 30 Yr. Jumbo 4.80% +0.05 0.00 5/1 ARM 4.60% +0.01 1.00 Updates Daily - Last Update: 5/17 15 Yr. Fixed Rate 4.84% +0.06% Rate Change Points Freddie Mac 30 Yr. Fixed 5.27% +0.17 0.90 15 Yr. Fixed 4.52% +0.12 0.80 5/1 Yr. ARM 3.96% +0.18 0.20 Updates Weekly - Last Update: 5/5 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 5.53% +0.17 0.73 15 Yr. Fixed 4.79% +0.11 0.80 30 Yr. Jumbo 5.08% +0.16 0.42 Updates Weekly - Last Update: 5/11 MBS / Treasuries MBS Live Recap: Another Head Fake Comes and Goes With Help From Data and Powell UMBS 30YR 4.0 98.89 -0.70 Price / Yield Change MBS UMBS 4.0 98.89 -0.70 UMBS 4.5 100.78 -0.59 GNMA 4.0 100.22 -0.53 GNMA 4.5 101.52 -0.50 Pricing as of: 5/17 5:21PM EST 10 Year US Treasury 2.9952 +0.1094 Price / Yield Change US Treasury 2 YR Treasury 2.711 +0.137 5 YR Treasury 2.970 +0.146 7 YR Treasury 3.018 +0.128 10 YR Treasury 2.995 +0.109 30 YR Treasury 3.192 +0.089 Pricing as of: 5/17 5:21PM EST Latest Video Our #1 fear isn't recession, but how high will rates go, says Mariner Wealt... Home builder sentiment drops to its lowest levels since June 2020 The 9am Bond Report: May 17, 2022 Retail sales climb 0.9% in April vs. 1% estimate Around the Web CNBC Powell says the Fed will not hesitate to keep raising rates until inflation comes down Calculated Risk Blog NAHB: Builder Confidence Decreased to 69 in May, "Housing market is now slowing" The Basis Point Details of Biden Plan To Address Housing Inventory Shortages Calculated Risk Blog Retail Sales Increased 0.9% in April CNBC 10-year Treasury yield climbs as investors await economic data, clues on monetary policy Calculated Risk Blog Housing Inventory May 16th Update: Inventory UP 1.5% Year-over-Year CNBC Inflation is the top problem facing America, with no other issue coming close, survey shows The Basis Point 2021s giant 19% home price spike didnt deter first time buyers Calculated Risk Blog Lawler: Mortgage/Treasury Spreads Part II: Decomposing the Widening This Year Calculated Risk Blog Four High Frequency Indicators for the Economy CNBC U.S. Treasury yields ease lower as investors monitor data, Fed comments CNBC Bernanke says the Fed's slow response to inflation 'was a mistake' Eye on Housing Multifamily Permits Strong At The End of First Quarter of 2022

© 2022 Mortgage News Daily, LLC. | 19701 Bethel Church Rd. | Cornelius, NC 28031 Interest rates displayed are national averages and for informational purposes only. Actual rates from lenders may vary based on several factors including, but not limited to, credit worthiness, ability to replay, credit score, down payment, loan term, etc. This email was sent to: newsletter@newslettercollector.com. Go here to UNSUBSCRIBE from this email.