News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
Wall St. vs. Main St.
Frank Anton / BUILDER / July 24, 2013
Some analysts are all aflutter about rising mortgage rates and a decline in existing home sales. Builders and buyers, not so much.
Yes, rates are up, and higher rates make housing less affordable. Couple that with housing price increases in many markets, and affordability is taking the old one, two.
Nonetheless, just last week the NAHB/Wells Fargo Housing Market Index jumped 6 points to 57, the highest reading since January 2006. On top of that, the component of the Index that gauges builders’ sales expectations for the next 6 months gained 7 points to 67, the strongest reading since…2005!
Then this week saw the release of existing home sales, which–to the dismay of some of the analysts–fell about 1% to 5.08 million. Somehow that 1% decline trumped (for the analysts) the fact that at 5.08 million existing home sales were up about 15% year-over-year and stood at the highest level since 2007 (save for the short period distorted by the home buyer tax credit).
And that’s bad news?
I don’t think so. Nor do builders.