Construction Costs, Buyer Traffic Continue to Sap Builder Confidence

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) fell another 5 points in November. NAHB said this measure of builder confidence in the new home market is now at 33 after 11 straight months of decline. The current reading is only 3 points higher than in April 2020 when the onset of the pandemic triggered a 42-point plunge. NAHB’s chief economist Robert Dietz said it is “Elevated interest rates, stubbornly high building material costs and declining affordability conditions that are pushing more buyers to the sidelines (and) continue to drag down builder sentiment.” Derived from a monthly survey that NAHB has been conducting for more than 35 years, the NAHB/Wells Fargo HMI asks builders to describe their perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate 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. All three HMI components posted declines in November. Current sales conditions fell 6 points to 39, sales expectations in the next six months declined 4 points to 31 and traffic of prospective buyers fell 5 points to 20. Looking at the three-month moving averages for regional HMI scores, the Northeast was down 6 points to 41, the Midwest dropped 2 points to 38, the South declined from 49 to 42 and the West posted a 5-point decline to 29.

November 16, 2022 Download our Mobile App: Download our Mobile App: Housing News Construction Costs, Buyer Traffic Continue to Sap Builder Confidence The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) fell another 5 points in November. NAHB said this measure of builder confidence in the new home market is now at 33 after 11 straight months of decline. The curr... (read more) Housing News Mortgage App Volume: Purchases at Highest Levels Since June Mortgage application volume increased on a seasonally adjusted basis during the week ended November 11 but declined sharply before adjustment. The Mortgage Bankers Association (MBA) further adjusted data from its Weekly Mortgage Applications Survey t... (read more) MBS Commentary Rates Keep Falling Even as Data and Fed Try to Talk Them Up Decent Rally Despite Strong Retail Sales and Hawkish Fed Speakers It was an interesting day for the bond market in terms of apparent inputs for rate movement and the actual movement seen in rates. Econo... (read more) Mortgage Rate Watch Mortgage Rates Little-Changed Near 2-Month Lows The mortgage landscape is very interesting at the moment. On any given day, some lenders are moving higher, others are moving lower, and the rest are remaining relatively unchanged. The average lender has been closer to unchanged so far t... (read more) Rob Chrisman Tech, QC, Foreclosure, POS, Jumbo Products; USDA, FHA, HUD News This morning I head to Kansas City to spend some time with the MBAKC. KC is a mere 500 miles from Oak Park, Illinois, east of Chicago and childhood home of Ernest Hemmingway. (Although Ernest Hemingway never actually used the phrase, “Wide lawns and ... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.64% +0.03% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.64% +0.03 0.00 15 Yr. Fixed 6.08% +0.03 0.00 30 Yr. FHA 6.25% -0.02 0.00 30 Yr. Jumbo 6.10% 0.00 0.00 5/1 ARM 6.17% -0.08 0.00 30 Yr. VA 6.32% 0.00 0.00 Updates Daily - Last Update: 11/16 15 Yr. Fixed Rate 6.08% +0.03% Rate Change Points Freddie Mac 30 Yr. Fixed 7.08% +0.13 0.90 15 Yr. Fixed 6.38% +0.09 1.00 5/1 Yr. ARM 6.06% +0.11 0.20 Updates Weekly - Last Update: 11/10 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.14% +0.08 0.77 15 Yr. Fixed 6.40% +0.03 1.13 30 Yr. Jumbo 6.50% -0.05 0.78 Updates Weekly - Last Update: 11/9 MBS / Treasuries UMBS 30YR 5.0 99.20 +0.52 Price / Yield Change MBS UMBS 5.0 99.20 +0.52 UMBS 5.5 100.86 +0.33 GNMA 5.0 99.64 +0.39 GNMA 5.5 100.75 -0.05 Pricing as of: 11/16 5:31PM EST 10 Year US Treasury 3.6917 -0.0853 Price / Yield Change US Treasury 2 YR Treasury 4.361 +0.017 5 YR Treasury 3.854 -0.047 7 YR Treasury 3.788 -0.065 10 YR Treasury 3.692 -0.085 30 YR Treasury 3.842 -0.121 Pricing as of: 11/16 5:31PM EST Latest Video A pause is off the table, says San Francisco Fed President Mary Daly Could the Fed pause its rate hikes in February? Fed Governor Waller expects a 50 bps hike in December The 2pm Bond Report - November 16, 2022 Around the Web CNBC Here's why Home Depot and Lowe's are booming in a housing market bust CNBC Fed's Waller says he's open to a half-point rate hike at December meeting CNBC Sharp drop in mortgage rates does little to boost demand Eye on Housing Builder Confidence Declines for 11 Consecutive Months as Housing Weakness Continues CNBC ECB will do 'whatever is necessary' to get inflation to 2%, vice president says CNBC Fed's Daly sees rates rising at least another percentage point as 'pausing is off the table' Reuters Fed's tighter monetary policy hasn't dented inflation yet, Bostic says Calculated Risk Blog Retail Sales Increased 1.3% in October Eye on Housing Building Materials Prices Decline for Second Consecutive Month Wall Street Journal Lowering Inflation Without a Recession Might Not Be Feasible, Fed Official Says Calculated Risk Blog AIA: Architecture Billings Index "decreases considerably" in October Calculated Risk Blog NY Fed Q3 Report: Household Debt Increases, Delinquencies "very low" Calculated Risk Blog Industrial Production Decreased 0.1 Percent in October

© 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.