Dealers who responded to this week’s Builder Activity Survey continue to report that their sales volumes are close to seasonal norms. Participants along the Gulf Coast, who are dealing with flooding rains and in the West where wildfires continue to burn, are somewhat less enthusiastic than participants in other areas of the country.
News in end use
Mortgage Rates Creep Higher in Week Ending September 24th, 2020
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending September 24th, 2020. The PMMS shows that 30-year fixed-rate mortgage averaged 2.90% with an average 0.8 point, up from last week when it averaged 2.87%.
New Home Sales Increase 4.8% in August
The U.S. Census Bureau reported that the sales of new single-family houses in August 2020 were at a seasonally adjusted annual rate of 1,011,000. This is 4.8% above the revised July rate of 965,000 and is 43.2% above the August 2019 estimate of 706,000.
Weekly Jobless Claims Inch Higher for the Week Ending September 19th, 2020
The U.S. Department of Labor is reporting that an additional 870,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, September 19th. An increase of 4,000 from the previous week’s revised level.
U.S. Home Prices Increase in July 2020
The Federal Housing Finance Agency (FHFA), Home Price Index (HPI) reports that U.S. house prices rose 6.5% from July 2019 to July 2020 and were up 1% for the month.
Mortgage Banker Associations Reports The Share of Mortgage Loans in Forbearance Drops to 6.3% for Week Ending September 13th, 2020
The latest Mortgage Banker Association’s Forbearance and Call Survey reports that the total number of loans in forbearance decreased by 9 basis points from 7.01% of servicers’ portfolio volume in the prior week to 6.93% as of September 13th, 2020.
U.S. Census Bureau Reports COVID-19 Pandemic Impacted Absorption Rate of Rental Units and Condos
The latest data from the U.S. Census Bureau’s Survey of Market Absorption (SOMA) reveals that the absorption rate of unfurnished and unsubsidized apartments (the share rented out in the first three months following completion) fell to 45% in Q1 of 2020, down from 53% in Q1 2019.
Existing Home Sales in August Hit Highest Level Since December 2006
The National Association of Realtors® (NAR) has reported that total existing-home sales in August, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 2.47% above July, to a seasonally-adjusted annual rate of 6.00 million in August.
New Home Prices in Canada See their Largest Monthly Increase in 3-years
Statistics Canada reported on Monday (9/21) that its New House Price Index (NHPI), which tracks the price of newly built homes, rose by 0.5% in August. The fourth straight month of increases and the largest increase in NHPI since May of 2017.
U.S. Household’s Market Values Increase in Q2 2020, Despite COVID-19 Pandemic
According to the second quarter of 2020 Federal Reserve Flow of Funds Report, the COVID-19 pandemic did not impact household’s market values. On the contrary, household market values continued to rise throughout all of Q2 of 2020.