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.
Eye on Housing / NAHB / November 14, 2013
Strengthening house prices and increased interest rates in metros across the country contributed to lower housing affordability in the third quarter, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).
In all, 64.5 percent of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $64,400. This is down from the 69.3 percent of homes sold that were affordable to median-income earners in the second quarter, and the biggest HOI decline since the second quarterRead More
Shayndi Raice / WSJ.com / November 6, 2013
Bank of America Chief Executive Brian Moynihan said the U.S. housing market is “fairly stable” at a Wall Street Journal event in New York Wednesday.
Big banks have seen their mortgage banking income decline in recent quarters as refinancing activity fizzles. But Mr. Moynihan said that a decrease in refinancing activity is not indicative of the strength of the overall U.S. housing market. Instead, he said that home purchases, which have grown slightly since the beginning of the year, are what spurs broader economic growth.
The head of second-largest U.S. bank by assets also saidRead More
BUILDER / October 30, 2013
In September, interest rates on conventional mortgages used to purchase newly built homes increased for the fourth month in a row, according to data released today by the Federal Housing Finance Agency (FHFA).
During the month, the average contract interest rate increased by 10 basis points to 4.30 percent, while initial fees increased to 1.14 percent (from an average of 1.06 percent the previous month). The combination drove FHFA’s key measure of the average effective interest rate on new home loans (which amortizes the initial fees and incorporates them into the rate) up by 11 basisRead More
Jonathan Smoke / Hanley Wood / September 18, 2013
The initial read on August permits and starts showed no evidence of single family construction being derailed by the increase in mortgage rates since May. Permits, which lead starts, were at a total level in line with most economists’ expectations. Single family permits were at the highest seasonally adjusted rate since May 2008. While the total starts number was down, the decline was caused by declines in the more volatile multi-family sector, and in fact single family starts were up 7% in August over July.
We work with more detailed market level permit data from the Census and fromRead More
Scott Cendrowski / Fortune/CNN Money / September 16, 2013
FORTUNE — What a difference a year makes. Last summer, when Fortune recommended homebuilder stocks, the chorus of dissenters was loud — and to some, persuasive. Their argument went something like this: “Homebuilders are doomed! Foreclosures are flooding the market and besides, no one wants to a buy a new home. They’ll rent forever!”
What happened next? Homebuilder stocks went on a tear. From last July through its peak this May, the S&P homebuilders index rose by 51%, more than doubling the S&P 500’s return. PulteGroup shares, as one example,Read More