Tag Archives: National Association of Home Builders

Builder confidence fell three points in April to 25, matching the lowest point of the year, the National Association of Home Builders said Monday. The month-over-month decline was the first since last September. All three components of the index ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô current sales, sales six months out and buyer traffic ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô fell in April, with buyer traffic slipping to a four month low. The builder assessment of present home sales conditions dropped three points to 26. The outlook for home sales in the next six months also fell three points to 32.

Fannie Mae and Freddie Mac entered federal conservatorship in 2008, as lawmakers and presidents stepped in to stymie a freefall for the nation├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós largest mortgage companies, just as words like subprime and systemically important institutions gained traction for the public. Four years and roughly $180 billion in taxpayer funds later, old hands, regulators, and freshman lawmakers alike struggle with a vexing riddle. How can a system polarized by politics safely shrink companies responsible for more than $11 trillion in mortgages without blowing the recovery ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô and what will it mean for mortgage finance?

The potential for a lift in mortgage rates is unlikely to spell trouble for the housing recovery, according to a recent report. Paul Diggle, a property economist with Capital Economics, said in a note Monday that still-low home prices will help cushion the blow from interest rates. Mortgage rates continue to linger near record lows, with 30-year and 15-year fixed-rate mortgages hovering at or below 4 percent for the past several weeks. Waning confidence in Europe├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós ability to halt the debt crisis in Greece drives investors to U.S. Treasury debt.

Builder confidence was flat in March, matching a downwardly revised February index of 28, the first time in six months the index has not increased, the National Association of Home Builders reported Monday. The builder assessment of present home sales conditions actually dipped in March, falling to 29, the first decline since last September. The outlook for home sales in the next six months rose to 36 ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô the highest level since June 2007 - from 34 in February. Buyer traffic was flat in March at 22. The drop in the index in the West census region was precipitous.

Fewer declines in housing permits, strengthening job numbers, and stabilizing home prices helped field improvements in nearly 100 housing markets in March, according to the National Association of Home Builders. The trade group released results to show that 31 metropolitan markets joined the First American Improving Markets Index, canceling departures from the list by 30 others. The total number of improving markets settled at 99. New additions signaled improvements in 33 states, with Texas outpacing other states with 12 entrants.

A prominent housing trade group joined a growing roster of policy makers by outlining ways to take the GSEs off federal conservatorship, reintroduce private mortgage-backed securities, and charge existing government entities with stewardship of the new system. The National Association of Home Builders released a white paper Monday that calls on lawmakers to slowly transition a system dominated by Fannie Mae and Freddie Mac to one that shares and balances responsibility. The proposal comes as others arrive from lawmakers and policy makers to replace the GSEs.

After months of wrangling, the House and Senate passed a permanent payroll tax cut extension Friday without imposing controversial guarantee fees for lenders with government-backed mortgages. The House passed the bill, reportedly worth $100 billion, by a margin of 293 to 132 before the Senate cleared it by a vote of 60 to 36. Partisanship on Capitol Hill stalled the extension last fall, prompting both chambers of Congress to field a temporary two-month extension that hiked guarantee fees for lenders. The move netted criticism from various trade groups.

The National Home Builders Association released a housing market index that improved to 29 in February, its highest level since May 2007, with all three of the components showing new strength. The trade group said that it was the fifth consecutive monthly increase, the longest stretch of consecutive monthly increases since April- October 1995. The current conditions index rose to 30, a five-point jump, the largest month-over-month gain since April 2010. The forecast component, assessing conditions six months out.

Negative equity, tight mortgage credit, and an overhang of foreclosed properties conspire to delay a full-fledged housing rebound and economic recovery, Federal Reserve chairman Ben Bernanke said Friday. He said that the inability ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô or unwillingness ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô of lenders to lend puts the brakes on much-needed activity by first-time and repeat homebuyers. He cited a contraction in mortgage credit outstanding for U.S. homes by about 13 percent, with mortgage originators reluctant to lend to otherwise eligible borrowers.

Homebuilder confidence in the single-family market ended the fourth quarter last year on a climb uphill as the wider economy showed improvement. The National Association of Home Builders released a market index Tuesday that recorded a four-point increase year-over-year to 18 for homebuilders in the single-family sector. The index fielded improvements across the board year-over-year, with confidence about current sales ticking up four points to 17 and anticipated sales for the next six months up two points to 26.