New Home Sales Fall on Higher Rates

2022-04-26T11:17:16-05:00

By Danushka Nanayakkara-Skillington on April 26, 2022 • New single-family home sales declined in March as mortgage rates jumped to the highest levels since the start of the pandemic. Per Freddie Mac, the 30-year fixed rate mortgage was 3.89 at the end of February and had climbed to 4.67 at the end of March. The U.S. Department of Housing and Urban Development and the U.S. Census Bureau estimated sales of newly built, single-family homes in March at a 763,000 seasonally adjusted annual pace, which is a 8.6% decline over upwardly revised February rate of 835,000 and is 12.6% below the March 2021 estimate of 873,000. Sales-adjusted inventory levels are at a balanced 6.4 months’ supply in March. The count of completed, ready-to-occupy new homes is just 35,000 homes nationwide. Median sales price is up in March at $436,700 as the cost of residential construction continues to increase in 2022. The median sales price is up 3.6% compared to February and is up 21.4% compared to March 2021. Moreover, sales are increasingly coming from homes that have not started construction, with that count up 35.8% year-over-year, not seasonally adjusted (NSA). Nationally, on a year-to-date basis, new home sales are down 6.8% for the first quarter of 2022. Regionally, on a year-to-date basis, new home sales were up 10.5% in the Northeast and 8.5% in the West but fell 9.2% in the Midwest and 13.9% in the South. Related ‹ Builders’ Profit Margins Fall as Balance Sheets GrowTags: economics, home building, housing, new home sales, sales, single-family

New Home Sales Fall on Higher Rates2022-04-26T11:17:16-05:00

Mortgage Rates Reach 3-Year High

2022-04-06T11:32:27-05:00

By Litic Murali on April 6, 2022 • In the past month, total mortgage activity, as measured by the Mortgage Bankers Association’s (MBA) Market Composite Index, underwent a series of weekly declines, decreasing in the latest week by 6.3 percent. The latest week’s survey is for the week ending April 1. The latest week’s activity consisted of a 3.4 percent decrease in purchasing and a 9.9 percent decrease in refinancing. The current month’s 30-year fixed-rate mortgage rates averaged 4.6 percent, compared to 3.1 percent in the previous month. The latest weekly rate of 4.9 percent was 10 basis points higher than the week before. This is the highest it has been in over three years. The MBA attributes financial markets’ expectations of tighter monetary policy in coming months as the cause of the weekly surges. The hot job market and wage growth continue to support housing demand despite much higher rates, although some demand-side measures are weakening. For example, the March NAHB/Wells Fargo HMI measure of future new home sales fell a notable 10 points. Insufficient for-sale inventory continues to restrain purchase activity and elevated average loan sizes continue to price out first-time homebuyers. On an unadjusted basis, the Purchasing Index showed a year-over-year decline of 9 percent, i.e., compared to the same week one year ago. For the same comparison period, the Refinancing Index showed a 62 percent decline. The refinance share of mortgage activity decreased to 38.8 percent of total applications from 40.6 percent the previous week and from 51 percent one year ago. The adjustable-rate mortgage (ARM) share of activity increased to 6.8 percent of total applications. The FHA share of total applications decreased to 9.2 percent from 9.3 percent the week prior. Related ‹ Rural Markets’ Home Building Market Shares in 2021Tags: 30-year fixed-rate mortgage, first-time buyers, home mortgage, housing demand, inventory, job growth, monetary policy, mortgage bankers association, new home sales, refinancing, wage growth

Mortgage Rates Reach 3-Year High2022-04-06T11:32:27-05:00

Staying safe during the Coronavirus pandemic.

2021-05-11T08:19:31-05:00

By Hillwood Communities on July 30, 2020 • As we all continue to navigate the disruptive beast that is the Coronavirus, Hillwood Communities is working diligently to continue to partner with our Realtor community to make the sales process as

Staying safe during the Coronavirus pandemic.2021-05-11T08:19:31-05:00

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