The National Association of Home Builders (NAHB) Housing Market Index showed homebuilder sentiment in November unexpectedly improved to another record high, jumping to 90, versus forecasts calling for it to match October's 85 level. A level north of 50 depicts positive conditions. The index notched a record high for the third month in a row and the NAHB noted that this reflects that housing is a bright spot for the economy. "However, affordability remains an ongoing concern, as construction costs continue to rise and interest rates are expected to move higher as more positive news emerges on the coronavirus vaccine front," the NAHB added.
Housing starts for October rose 4.9% month-over-month (m/m) to an annual pace of 1,530,000 units, above the Bloomberg forecast of 1,460,000 units, and compared to September's upwardly-revised pace of 1,459,000 units. However, building permits, one of the leading indicators tracked by the Conference Board as it is a gauge of future construction, came in flat m/m at an annual rate of 1,545,000, south of expectations of 1,567,000 units.
The MBA Mortgage Application Index dipped by 0.3% last week, following the prior week's 0.5% decline. The modest decline came as a 1.8% drop in the Refinance Index more than offset a 3.5% gain in the Purchase Index. The average 30-year mortgage rate ticked 1 basis point (bp) higher to 2.99%.
Millennials’ homeownership rate trend —
which has largely lagged prior generations
— has started to reverse with the rate
jumping in 2020. Demand from millennials
should remain strong for years. Another
possible driver for young buyers could come
from housing policy. Biden has proposed a
$15,000 tax credit for first-time homebuyers,
which could lead to even greater housing
demand.
Waning stimulus and government housing
programs, high unemployment among the
young, and falling affordability (chart below) are
risks for Homebuilders.
Part 1 here . On Leaving the Golden State Guest Post by NicklethroweR . Posted on the Burning Platform. The fabled Ventura Highway is all that separates my artist loft from the beach where surfing first came to the United States. Both my balcony and front patio face the freeway at about eye level and I could easily smack a tennis ball right on to the ever busy 101. Access to the beach and boardwalk is very important to a Tourist Town such as mine and I can see one underpass from my balcony and another underpass from the patio. Further up the street are two pedestrian bridges. Both have been recently remodeled so that people can not use it to kill themselves by leaping down into traffic. The traffic, just like the spice, must flow and the elites that live here do not like to be inconvenienced as they dart about between Malibu and Santa Barbara. Another feature of living where I live would have to be the homeless, the insane and the drug addicts that wander this particular
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