Affordability, interest rates fuel biggest drop in Housing Market Index since 2014 By NHBR Published: November 20, 2018 Growing concerns about housing affordability have resulted in a sharp drop in U.S. homebuilders’ confidence, according to the results of the latest National Association of Home Builders/Wells Fargo Housing Market Index, or HMI. Sagging builder confidence in the market for newly built single-family homes dropped eight points in November, to 60 – the biggest monthly drop since 2014. But the home builders association pointed out that builder sentiment still remains in positive territory. “Builders report that they continue to see signs of consumer demand for new homes but that customers are taking a pause due to concerns over rising interest rates and home prices,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La. However, pointed out Robert Dietz, NAHB’s chief economist, “while home price growth accommodated … [Read more...] about Homebuilder confidence falls in NAHB survey
Nahb housing market index
Rising mortgage rates and continued home price growth are hurting affordability and fast becoming a toxic cocktail for the nation’s homebuilders, USA Today reports. Sentiment among homebuilders dropped 8 points in November to 60 in the National Association of Home Builders/Wells Fargo Housing Market Index. That is the lowest reading since August 2016, but anything above 50 is still considered positive. The index stood at 69 in November of last year and hit a cyclical high of 74 last December. “Builders report that they continue to see signs of consumer demand for new homes but that customers are taking a pause due to concerns over rising interest rates and home prices,” said NAHB Chairman Randy Noel, a builder from LaPlace. Of the index’s three components, current sales conditions fell 7 points to 67, sales expectations in the next six months dropped 10 points to 65, and buyer traffic registered an 8-point drop to 45. Buyer traffic had broken out of negative … [Read more...] about Housing markets suffer under rising prices and mortgage rates
NEW YORK – Confidence among United States homebuilders plummeted by the most since 2014 as the highest borrowing costs in eight years restrain demand, adding to signs of a cooling housing market that will weigh on the Federal Reserve’s debate over how far to raise interest rates. The National Association of Home Builders/Wells Fargo Housing Market Index dropped eight points in November to 60, the lowest level since August 2016, according to a report Monday. That compared with the median estimate of economists for a one-point drop to 67. Shares of homebuilders fell and 10-year Treasury yields erased gains following the report, which represents one of the first breaks in elevated levels of business and consumer confidence that have persisted since Donald Trump was elected president in November 2016. While the index remains in positive territory, the group called on policy makers to take note of the housing situation as a possible warning sign about the broader economy. A … [Read more...] about U.S. homebuilder index drops by most since ’14 as rates rise
Michele Lerner, The Washington Post Published 4:03 am PDT, Thursday, October 4, 2018 This 2014 photo shows a new home community in San Ramon, Calif. This 2014 photo shows a new home community in San Ramon, Calif. Photo: Bloomberg Photo By David Paul Morris. Construction of this neighborhood northwest of Atlanta ground to a halt in August 2007. Construction of this neighborhood northwest of Atlanta ground to a halt in August 2007. Photo: Bloomberg Photo By Chris Rank. Potential home buyers visit a foreclosed house in Long Island, N.Y., in May 2008. Potential home buyers visit a foreclosed house in Long Island, N.Y., in May 2008. Photo: Bloomberg Photo By Jin Lee. The developer of this housing development in Fort Myers, Fla., went out of business before it could be completed. The … [Read more...] about 10 years later: How the housing market has changed since the crash
Futures moved higher in premarket trading Monday, as defense names pulled back from early gains following Friday's U.S. missile attack on Syria, and investors looked to earnings results from Bank of America (BAC), Netflix (NFLX) and others. X Futures for the Dow Jones industrial average maintained early gains, up 0.6%. Visa (V) and Intel (INTC) led the index, each up more than 0.9% in premarket trading. Futures for the S&P 500 also gained 0.6%. Nasdaq 100 futures strengthened 0.7% above fair value, with retailer Tractor Supply (TSCO) seizing an early lead after an upgrade from Goldman Sachs. The market's young rally met resistance Friday as the Dow, S&P 500 and the Nasdaq all deflected from their 50-day moving averages. The three indexes are now contained in the narrowing range between support at their 200-day, and resistance at their 50-day levels. The market's status remains positive, but investors should stay wary — a significant move past either moving average could … [Read more...] about Premarket Trading: Futures Rise, Fiber Optic Names Dive, Can Netflix Make It 6 ?