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New construction growth slows as mortgage rates climb

Single-family housing authorizations increased by 1.21% year over year in May. However, the pace of year-over-year growth has slowed in recent months, in step with declining homebuilder sentiment, which fell eight points in May to the lowest reading since June 2020, according to the National Association of Home Builders. The sharp rise in mortgage rates... Read More

Maintenance and remodel activity show signs of cooling

Maintenance volumes experienced the first, albeit slight, year-over-year decline for the first time since May 2020, when existing housing activity started to show signs of recovery following the onset of the COVID-19 pandemic. Following strong growth in 2020 and 2021, home renovation activity may begin to cool down in step with the broader housing market.... Read More

Housing activity growth slows as mortgage rates rise

The average interest rate for a 30-year mortgage in the United States jumped to 4.67% for the week ending March 31, 2022, the highest reading since December 2018, according to Freddie Mac. Mortgage rates have risen steadily for a month, driven higher by the Federal Reserve’s effort to combat inflation, and placing pressure on prospective... Read More

New and existing home construction increases despite inflation

The annual inflation rate accelerated to 7.9% in February, the highest level seen since the 1980s, according to the Labor Department’s Bureau of Labor Statistics. New and existing home construction experienced increases across the board in February despite rising inflation. Single-family housing activity increased nearly 5% year over year. Although new construction rose in February,... Read More

New construction rises while builder confidence dips

Homebuilder confidence dipped in January for the first time in four months, according to the National Association of Homebuilders. Despite homebuilder hesitation, year-over-year new construction growth edged higher in January. While strong consumer demand and the acute housing shortage support the need for new construction, the combination of higher building material costs, worsening labor shortages,... Read More

Ongoing supply-demand imbalance drives housing activity

Homebuilder confidence edged higher in December because of strong consumer demand and lack of inventory, according to the NAHB/Wells Fargo Housing Market Index. The supply-demand imbalance propelled housing activity in 2021; however, homebuilders continue to face headwinds from supply-chain disruptions, labor shortages, and expensive building materials. These factors are likely beginning to curb new construction... Read More

Rising inflation looms over the housing market

Following two unprecedented and unpredictable years, some major unknowns loom over the housing market, including rising inflation. The consumer price index rose 6.8% year-over-year in November – the greatest 12-month increase since 1982. Higher than expected inflation in 2022 could dampen the housing market outlook, and there are concerns about whether new construction can sustain... Read More

Mounting inflation slows construction

Homebuilder confidence unexpectedly jumped in October, despite expensive building materials and acute labor shortages that continue to strain the construction industry. Homebuilders have struggled to meet strong consumer demand that was perpetuated by the COVID-19 pandemic, as the current supply of homes on the market remains historically low. This month, single-family housing authorizations remained relatively... Read More

Housing activity holds steady as consumer confidence slides

Housing activity was largely positive in September, although the pace of growth has slowed from its white-hot trajectory following the COVID-19 pandemic. New and existing housing supply activity, September 2021 Single-family housing authorizations increased 6.81% year over year. Existing housing maintenance volume increased 2.01% year over year. Existing housing remodel volume slightly decreased 0.22% year... Read More

Housing activity growth slows as consumer confidence wanes

Housing activity showed healthy growth in August, although the pace of growth has decelerated in recent months—an indication of market stabilization. New and Existing Housing Supply Activity, August 2021 Single-family housing authorizations increased 9.05% year over year. Existing housing maintenance volume increased 2.50% year over year. Existing housing remodel volume slightly decreased 0.19% year over... Read More