By the Numbers - Economy that Effects Mortgage
So here’s the skinny, signals were mixed. Economic indicators were up and housing starts are very low and the big question still remains, “when will housing recover and what will it look like when it does recover?” We’ll be here to walk you through it every step of the way. Here are the numbers.
The Conference Board reported that its index of leading economic indicators rose 1% in April. It was the first gain in seven months and the biggest gain since November 2005. The index is designed to forecast economic activity in the next three to six months.
The National Association of Home Builders/Wells Fargo housing market index rose two points in May to 16. This follows a five point jump in April. It was the first back-to-back monthly gain since February 2008. An index reading below 50 indicates negative sentiment about the housing market. However, the latest gain confirms strength in the prior month and it’s the best reading since September 2008.
Construction of new homes and apartments fell 12.8% in April to a seasonally adjusted annual rate of 458,000 units, the slowest pace since recordkeeping began in 1959. The drop was led by a 46.1% decrease in the volatile construction of multifamily units. Construction of single-family homes rose 2.8% to an annual rate of 368,000 and building permits were up 3.6% to a rate of 373,000 in April.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending May 15 increased 2.3% to 915.9 from 895.6 the previous week. Purchase volume fell 4.4% to 254, while refinancing applications jumped 4.5% to 4,794.4.
