Eye On Housing
Initial and Continuing Claims Decline
Weekly initial jobless claims decreased in the week ending August 1 after two weeks of increases. Continuing claims, which lags initial jobless claims by one week, dropped by 844,000 in the week ending July 25. Although jobless claims remain at historically high levels, the decreases in initial jobless claims and continuing claims indicate that labor market is recovering gradually from... Read More ›
Housing Affordability Hits 18-Month Low on Lack of Supply, Higher Prices
Despite low interest rates, a supply shortage coupled with rising home prices contributed to a decline in housing affordability in the second quarter of 2020, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI). In all, 59.6 percent of new and existing homes sold between the beginning of April and end of June were affordable... Read More ›
Business Application Shows Growth in Q2 2020
Housing creates jobs, and housing in turn follows job growth from business activity. Thus, tracking the growth of enterprise provides a guide to future home building. The Census Bureau recently released its Second Quarter 2020 Business Formation Statistics Report (BFS). The report provides timely and high-frequency data on business applications and employer business formations measured by applications for an Employer... Read More ›
Treasury and Mortgage Rate Spread Widens in July
The month of July witnessed a sustained downward trend in the 10-year U.S. Treasury, as it dipped below 0.6%. Despite the downward trend of Treasuries, which are a proxy measure of the risk-free rate that the government offers on debt, mortgage rates through July did not decrease proportionately. The spread between the 10-year Treasury and the 30-year fixed-rate mortgage rate... Read More ›
Private Residential Construction Spending Declined in June
NAHB analysis of the Census Construction Spending data shows that total private residential construction spending stood at a seasonally adjusted annual rate (SAAR) of $534.2 billion in June. It was down 1.5% in June, after a 3.6% decline in May and a 4.4% decrease in April, due to the economic consequences of the COVID-19 lockdowns. On a year-over-year basis, total... Read More ›
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