Tag Archives: National Association of Home Builders

The market remains a dim one for new single-family homes, according to an index jointly released by Wells Fargo and the National Association of Home Builders. The index registered confidence at 15 on a 0-to-100 scale, staying largely the same since July. The low confidence follows a hit taken by homebuilding companies in the stock market last week. Analysts and economists weighed in with MReport about how slowing momentum in home construction and sales, as reflected by homebuilder confidence, impacts job creation and consumer confidence.

On the heels of Standard & Poor's controversial downgrades for U.S. debt ratings, Congress passed the deficit reduction axe to a bipartisan, six-member "super-committee" for each chamber, with both parties finally naming lawmakers to the commission Thursday. Capitol watchers say important housing laws and provisions may await the congressional guillotine, with the mortgage tax rate deduction, mortgage debt, and other housing-related giveaways in line. The appointments follow a recent deduction-slashing proposal.

The Dow Jones Industrial Average swept clean Tuesday's historic gains with a 519.83-point nosedive Wednesday, reflecting widespread fears about contagious European debt, the impact of Standard & Poor's downgrades, and an economic slowdown worldwide. Signaling further distress for housing markets, banks with thick mortgage portfolios and homebuilding companies saw their stocks tumble in an investor stampede for the exits. Following the Dow closely, the Nasdaq and S&P 500 plunged 101.47 points and 51.77 points, respectively.

Fewer homebuyers purchased new single-family homes over June, the Census Bureau and HUD reported Tuesday, with sales falling to an annual rate of 312,000 from 315,000 the previous month. Economists say these numbers nonetheless reflect progress from February, when single-family sales hit a record low, while others point to a slowly vanishing foreclosure fleet. The report held that June sales amounted to 1.0 percent, plus or minus 12.5 percent, beneath revised May estimates, still 1.6 percent above estimates from June last year.

Recent news reports show homebuyers flocking to high-end properties to close rates for jumbo loan mortgages, even as Congress wavers on a proposed bill that would cement higher thresholds for federally insured mortgages.

On Monday the National Association of Home Builders reported an increasingly sunny outlook among single-family homebuilders, with a Housing Market Index jointly released by Wells Fargo signaling a 13-point rise in homebuilder confidence-an uptick from the three-point plunge in June. In July two of the three indexes saw surges, up from steady declines over May. Current sales conditions went up to 15 from two points-the same as in May-as sales expectations for the next six months jumped by 22 points.