Last week’s economic reporting included readings from the National Association of Home Builders on housing markets, reports on sales of previously owned homes, housing starts, and building permits issued. Weekly readings on mortgage rates and jobless claims were also released.
NAHB: Rising Materials Costs, Supply Chain Problems Weigh on Builders
The National Association of Home Builders’ February housing market index reading was 82 and one point lower than in January. This was the second consecutive month that builder confidence dropped by one point. Homebuilder confidence in housing market conditions remained relatively high as any index reading over 50 indicates that most builders are confident about market conditions.
Short supplies of available homes and high demand combined to hold builder confidence steady, but growing concerns over rising materials costs, delivery delays, and labor shortages put downward pressure on builder confidence. NAHB chair Jerry Konter wrote, “Many builders are waiting months to receive cabinets, garage doors, countertops, and appliances. These delivery delays are raising construction costs and pricing prospective buyers out of the market.” Rising mortgage rates coupled with rising home prices were regarded by homebuilders as threats to affordability for moderate-income and first-time home buyers.
Building Permits Increase as Housing Starts Decline
The Commerce Department reported that building permits issued exceeded expectations and the prior month’s reading. 1.90 million building permits were issued on a seasonally-adjusted annual basis in January as compared to the expected reading of 1.75 million permits issued and December’s reading of 1.89 million permits issued.
January housing starts decreased to 1.64 million starts on a seasonally-adjusted annual basis from December’s reading of 1.71 million starts and the expected reading of 1.69 million housing starts. Economists expect a slowdown in home building as shortages of available homes, rising home prices, and mortgage rates continue to impact affordability.
January sales of previously-owned homes rose to 6.50 million sales on a seasonally-adjusted annual basis from December’s reading of 6.09 million sales. Analysts predicted a reading of 6.10 million sales.
Mortgage Rates Rise, Jobless Claims Mixed
Freddie Mac reported higher average mortgage rates last week as the rate for 30-year fixed-rate mortgages rose 23 basis points to 3.92 percent. Rates for 15-year fixed-rate mortgages averaged 3.15 percent and were 22 basis points higher. The average rate for 5/1 adjustable rate mortgages rose by 18 basis points to 2.98 percent. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.
First-time jobless claims rose to 248,000 claims filed; analysts expected 218,000 new claims to be filed based on 225,000 initial jobless claims filed in the prior week. 1.59 million ongoing jobless claims were filed last week as compared to the previous week’s reading of 1.62 million continuing jobless claims filed.
What’s Ahead
This week’s scheduled economic reporting includes readings from S&P Case-Shiller Home Price Indices, the Federal Housing Finance Agency Home Price Index, data on new home sales, and the University of Michigan’s Consumer Sentiment Index.
Many people romanticize the idea of paying off their home mortgage early so they can enjoy their home in retirement, but when it comes to the later years of life, a big house can actually be too much to handle. If you’ve started to consider a smaller home and are wondering why it might be a good decision for you and yours, here are a few things you may want to consider.
If you are like many other homeowners, your home mortgage payment is the single largest expense in your monthly budget. This is a fixed expense that you will typically be responsible for until your loan is paid in full or until you sell your home, and you may have a 15, 20 or even 30 year term on your mortgage.
With all the expenses that go into monthly living and the temptations that come along with life, saving money for the down payment on your new home can be quite a struggle for many people. If you’re having a hard time saving and are wondering what you can do to ensure a higher bank balance next month, here are a few things that may pose a risk to getting the home of your dreams.
There is so much to know when it comes to homeownership that even wading into all of the information can seem overwhelming, but if there’s one thing you need when the time comes to purchasing a home, it’s to be prepared. Here are a few ways that you can ensure you’re ready for what a mortgage entails so that buying your dream home will be a positive experience you won’t regret.
Last week’s economic reporting included readings on inflation and the University of Michigan’s preliminary February reporting on consumer sentiment. Weekly readings on mortgage rates and jobless claims were also released.
A monthly mortgage can seem like enough of a financial responsibility on its own, but there are many factors involved in home ownership that affect its fiscal feasibility. If you’re in the market for a house and are wondering how your income will stack up against the rest of your expenses, here’s how to determine a home cost that’s reasonable for you.
lmost everyone has been locked out of their home before. If you do not have a hidden key or someone else with a key, it can be stressful to wait for a locksmith to come and open the door. Fortunately, there are ways homeowners can address this issue, and one of the options is to get a smart lock or an electronic lock instead. 
There are a number of significant advantages that come with homeownership, and one of the biggest advantages is the ability to take out a home equity loan. As homeowners pay off the mortgage, the amount of equity in the house increases. Homeowners can borrow against the equity in their house to fund other projects. For example, homeowners could borrow against home equity to complete a home renovation, pay medical expenses, or pay down student loans. The most common home equity loans include cash-out refinances, a traditional home equity loan, and a home equity line of credit. Which is the best option? 
It is exciting to hear that an offer has been accepted, and many homeowners are ready to move into their new houses as quickly as possible. At the same time, homeowners must take the time to review all documents associated with the purchase. Purchasing a house is a major financial decision, and homeowners need to understand what their obligations are. That is where the closing disclosure is critical. What type of information is included in the closing disclosure, and what do homeowners need to know now?