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The MReport Webcast: Wednesday 8/20/2014

Homebuilders picked up the pace in breaking ground on new homes in July, reversing a two-month downward trend. According to figures released Tuesday by HUD and the Commerce Department, privately owned housing starts last month were at a seasonally adjusted annual rate of nearly 1.1 million, a 15.7 percent spike from June's upwardly revised rate of 945,000and a 21.7 percent gain over the same month last year. While most of that improvement came from a surge in multifamily building, single-family starts also posted a solid gain, rising 8.3 percent to a rate of 656,000 units.

While new starts surged over the month, permit issuance looked weaker, climbing just over 8 percent to a seasonally adjusted yearly rate of 1.05 million, with most of that increase coming from apartment construction. While permit issuance is climbing at a slower pace than starts, the latest confidence index from the National Association of Home Builders suggests builders haven't lost faith in the single-family market. The NAHB’s August index, released Monday, showed increased optimism among builders for current and future home sales—a sign that permit growth could pick up in the coming months.

The second quarter of 2014 saw a sizable jump in mortgage origination volumes, while servicing portfolios shrank at many of the biggest firms, according to a market report. Based on data collected from April through June, Mortgage Daily reported a 24 percent quarterly increase in mortgage originations to an estimated $296 billion among all lenders as of June 30. Production still fell short 51 percent on an annual basis as consumer demand for mortgages remained anemic and credit standards stayed tight.

Mortgage Daily’s report comes a week after the latest market analysis from investment bank Keefe, Bruyette & Woods, which observed a 22 percent second-quarter improvement in originations among the lenders it tracks.

 

About Author: Jordan Funderburk

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