“I’m on my way. I’m on my way. Home sweet home.” (Motley Crue) July brought some mixed news for homebuyers around the country who’ve been looking to find their way to new homes but have struggled with limited inventory.

Housing StartsJuly housing starts rebounded slightly from the steep decreases seen in June. Housing starts grew to a seasonally adjusted annual rate of 1.168 million units, which was a 0.9 percent increase from June’s downwardly revised estimate of 1.158 million, the Commerce Department reported.

Housing starts were down 1.4 percent from July 2017, however, likely due to higher construction costs for materials and land and labor shortages this year. Results were divided across the country with increases in the Midwest and South and declines in the West and Northeast. Single-family starts, which make up the bulk of the residential housing market, were up 0.9 percent from June.

There was a positive sign as building permits, a sign of future construction, increased 1.5 percent from June and are up 4.2 percent from a year ago. If this upward direction in permits continues, new home construction could get the boost it needs in the months to come.

Retail sales data for July signaled that the U.S. economy is doing well. Retail sales rose 0.5 percent from June, well above the 0.1 percent expected. However, June retail sales were revised lower to 0.2 percent from 0.5 percent, which took some of the luster from July’s figures. On an annual basis, retail sales were up 6.4 percent from July of last year.

Both stocks and bonds saw seesaw trading in the latest week due to uncertainty overseas in Turkey and ongoing tariff issues with China. Home loan rates remain near historic lows.

Housing data highlights the second half of the week.

  • Existing Home Sales will be released on Wednesday. New Home Sales follow on Thursday.
  • Also on Thursday, weekly Initial Jobless Claims will be released, as usual.
  • Friday brings Durable Goods Orders.

If you or someone you know has questions about home loan rates or products, please contact me. I’m happy to help.

Related Articles

This past week, home loan rates ticked up again despite the Fed recently cutting rates by a full point and the 10-year Note remaining just above 1%. Why? Mortgage backed securities (MBS) are bonds that price home loan rates. This week, the spread or difference in yield between the 10-year…
Read More of the post Coronavirus and Extreme Volatility

The continued strength of the labor market, along with historically low mortgage rates, will keep positive housing momentum alive in 2020. The Unemployment Rate is currently at a 50-year low of 3.6% with expectations for the index to push even lower to 3.25% by year's end, matching lows last seen…
Read More of the post A Great 2020 Housing Story

Home loan rates continue to hover near three-year lows. There are some on Wall Street who say rates are going to push even lower at some point — and they may be right. But what if they're wrong? What if rates have bottomed for the foreseeable future? Yes, locking a…
Read More of the post What the Market Is Saying

Bonds love uncertainty and bad news. As a result, rates improve when not-so-good news emerges. That was the story this past week, as China has reported a new deadly coronavirus has started to spread in their country. The virus, which spreads through human contact, has taken several lives and has…
Read More of the post Uncertainty Helps Rates

We recognize this is a difficult time for many people. Click here or call 866-913-2951 for more information and to learn about current options available to our borrowers.