Rates Continue to Depress Builders as Well as Sales

The National Association of Home Builders (NAHB) blamed high interest for lagging new home sales and the resulting dampened industry confidence in building them. NAHB chief economist Robert Deitz said mortgage rates averaged 6.92 percent last month and rates for construction and development loans were also elevated. The NAHB/Wells Fargo Housing Market Index (HMI), an indicator of home builders’ confidence in the market for newly constructed homes, was down 1 point in July to 42, the lowest reading since last December. Derived from a monthly survey that NAHB has been conducting for more than 35 years, the NAHB/Wells Fargo HMI gauges builder 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 used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. The HMI index charting current sales conditions in July fell 1 point to 47 and the gauge charting traffic of prospective buyers also declined by a single point to 27. The component measuring sales expectations in the next six months increased 1 point to 48. Deitz said that, while buyers seem to be waiting for lower interest rates, the six-month sales expectation for builders moved higher, indicating that builders hope for lower rates later this year as inflation data are showing signs of easing.

July 16, 2024 Download our Mobile App: Download our Mobile App: Housing News Rates Continue to Depress Builders as Well as Sales The National Association of Home Builders (NAHB) blamed high interest for lagging new home sales and the resulting dampened industry confidence in building them. NAHB chief economist Robert Deitz said mortgage rates averaged 6.92 percent last month a... (read more) MBS Commentary Bonds Shake Off Retail Sales Impact to End Stronger Bonds Shake Off Retail Sales Impact to End Stronger This morning's Retail Sales data may have been right in line with forecasts at the headline level, but components of the report were much stronger than expe... (read more) Mortgage Rate Watch Mortgage Rate Winning Streak Finally Ends, But Just Barely When is a defeat not really a defeat? Mortgage rates have an idea. They're fresh off an incredibly rare 8 day winning streak that took the average 30yr fixed rate to the lowest levels in 5 months AND well under the 7% mark for top tier sc... (read more) Rob Chrisman Rent Cap Response, AI, DSCR Tools, CFPB Townstone Case, Capital Markets The percentage of refinances of overall volume has fallen dramatically from a few years ago, leaving purchases to be the basis of business out there. Lenders are asking themselves, “How’s our non-owner product?” Investor buyers accounted for 15 perce... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.84% +0.03% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.84% +0.03 0.00 15 Yr. Fixed 6.30% 0.00 0.00 30 Yr. FHA 6.28% +0.02 0.00 30 Yr. Jumbo 7.05% +0.01 0.00 7/6 SOFR ARM 6.60% -0.02 0.00 30 Yr. VA 6.30% +0.01 0.00 Updates Daily - Last Update: 7/16 15 Yr. Fixed Rate 6.30% +0.00% Rate Change Points Freddie Mac 30 Yr. Fixed 6.89% -0.06 0.00 15 Yr. Fixed 6.17% -0.08 0.00 Updates Weekly - Last Update: 7/11 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.00% -0.03 0.60 15 Yr. Fixed 6.63% +0.07 0.61 30 Yr. Jumbo 7.13% +0.02 0.38 Updates Weekly - Last Update: 7/10 MBS / Treasuries UMBS 30YR 6.0 101.09 +0.13 Price / Yield Change MBS UMBS 6.0 101.09 +0.13 UMBS 6.5 102.30 +0.07 GNMA 6.0 100.85 +0.00 GNMA 6.5 101.68 -0.04 Pricing as of: 7/16 5:31PM EST 10 Year US Treasury 4.1615 -0.0713 Price / Yield Change US Treasury 2 YR Treasury 4.426 -0.034 5 YR Treasury 4.082 -0.051 7 YR Treasury 4.103 -0.066 10 YR Treasury 4.162 -0.071 30 YR Treasury 4.373 -0.088 Pricing as of: 7/16 5:31PM EST Latest Video It's time for bonds, says Goldman Sachs' Lindsay Rosner Homebuilder sentiment at the lowest level since December 2023 Powell's comments were a 'victory lap speech,' says Jeffries' David Zervos Retail sales unchanged in June, better than expected Around the Web CNBC Traders see the odds of a Fed rate cut by September at 100% Marketwatch Traders pivot back to multiple rate-cut view, reviving one of 2024s biggest trading themes CNBC Here are 6 buying categories cheaper today than they were before the pandemic Marketwatch Nearly a third of home sellers are cutting prices as housing supply balloons in these areas CNBC Powell indicates Fed won't wait until inflation is down to 2% before cutting rates Calculated Risk Blog 3rd Look at Local Housing Markets in June CNBC These are America's 10 best states for buying and selling a home in 2024, with a big caveat at No. 1 CNBC 'Rentvesting' can be 'a good way to get into the property market,' economist says. Here's how it works CNBC Treasury yields fall as investors digest Powell comments Calculated Risk Blog Retail Sales Unchanged in June CNBC Watch Fed Chair Jerome Powell's remarks on interest rate policy and the economy CNBC Deutsche Bank criticized by German regulator for financial reporting error Calculated Risk Blog NAHB: Builder Confidence Declined in July

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