Privately-owned housings starts in the U.S. declined more than -14% year-over-year in March, as indicated by the latest data from the U.S. Census and Commerce Department .
The seasonally adjusted annual rate of 1.139 million was also -0.3% below the revised February estimate of 1.142 million.
The count of building permits for privately‐owned housing decreased by -7.8% year-over-year to a seasonally adjusted annual rate of 1,269,000 in March.
Applications to U.S. lenders seeking loans to buy a home grew to their highest level in almost nine years even as mortgage rates increased for a second week, the Mortgage Bankers Association said on Wednesday.
The seasonally-adjusted barometer on purchase mortgage activity, climbed up 0.9% to 280.7 in the week of April 12, marking its strongest reading since 291.3 in the week of April 30, 2010. “The spring buying season continues to be robust, with activity more than 7% higher than a year ago and up year-over-year for the ninth straight week,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement.
U.S.consumer sentiment for home buying rose to its strongest in nine months, as a result of a sturdy jobs market and a decline in mortgage rates so far this year, according to Fannie Mae.
The federal mortgage agency said its home purchase sentiment index increased by 5.5 points to 89.8 points, its highest since last June. Fannie Mae’s latest data showed the net share of consumers surveyed in March who said it is a good time to sell a home jumped 13 points to 43%.
U.S.home sales rose 11.8% in February, aided by accelerating wages and falling mortgage rates that are improving affordability.
The National Association of Realtors said that existing homes sold at a seasonally adjusted annual rate of 5.51 million last month, a decisively sharp rebound from a pace of 4.94 million in January. Still, existing-home sales are down 1.8% from a year ago because of the severity of last year's slowdown.
After what was a tepid year last year, the U.S. housing market started building up strength in 2019.
According to Freddie Mac’s Primary Mortgage Survey, the average U.S. 30-year fixed-rate mortgage slipped to the lowest level in a year to 4.28% for the week ended Mar 21 from 4.31% recorded a week ago.It was also lower than the year-ago 4.45%.
The 15-year fixed-rate mortgage averaged 3.71%, down five basis points from 3.76% in the week earlier, while the five-year adjustable-rate mortgage was nearly flat at 3.84%.
Toll Brothers Inc. (TOL - Get Report) posted fiscal first-quarter net income of $112.1 million, or 76 cents a share on revenue of $1.32 billion, vs. earnings of 83 cents a share on sales of $1.2 billion in the same quarter a year ago.
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Homebuilder PulteGroup (NYSE: PHM) is set to release earnings on January 29, and the stock hit two layers of support ahead of the earnings report.The parallel upper rail connects the highs from October, November, and early January.
The three lows that form the lower rail could also be called a Three Rising Valleys formation.
The Tickeron AI Prediction tool generated a bullish signal three days ago and the signal came with a 75% confidence level.
Horton Inc. reported earnings per share of 76 cents, which fell short of FactSet consensus estimate of 78 cents.Its net sales orders increased +3% to touch 11,042 – which was less than FactSet new orders consensus of 11,411.
Chairman Donald Horton attributed rising home prices in recent years and increasing interest rates as factors behind downward pressure on home demand.
Nevertheless, the home construction company still experienced a +52% year-over-year increase in net income which touched $287.2 million in the quarter.
The Mortgage Bankers Association (MBA) says this, however, was 16% lower than a year ago.
"Mortgage rates fell across the board last week, driven by a similar slide in Treasury.Trade fears dominated investors' concerns for another week, and this was amplified by data released by the U.S. Commerce Department showing a widening trade deficit," said Joel Kan, MBA's associate vice president of economic and industry forecasting.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) decreased to 4.96%, the lowest level since September, from 5.08%, with points increasing to 0.48 from 0.44 (including the origination fee) for loans with 20% down payments.
Shares of the U.S. luxury home builder, Toll Brothers, slipped more that 5% on Tuesday after the company reported its first fall in quarterly orders in more than four years.
Corroborating the weak state of the U.S. housing market, the Q4 result of the company is the latest evidence of slowing housing demand, hit by rising interest rates and higher home prices.
After a pre-market fall of 4.2%, the shares further declined to 5.6% after the results indicated that demand would likely fall further in November.
Sales of new U.S. single-family homes plunged to a more than 2-1/2-year low in October, due to sharp declines across regions.
Toll Brothers, whose homes can cost upwards of $2 million, said orders (a key indicator of future revenue) dropped 13.3% to 1,715 units in the quarter ended Oct. 31, against the 6.5% rise expected by analysts.
Orders fell most in California, Toll’s biggest market by revenue.This was the hardest hit where orders in general declined by 39.4% to 226
US multifamily homebuilding rose in October but construction of singe family dwellings fell as interest rates continue to creep up.The Commerce Department also said building permits declined last month and homebuilding completions were the fewest they had been in a year.
Data for September was revised showing that starts dropped at a rate of 1.210 million units - higher than the previously reported drop of 1.201 million units.