Housing Market Decreased 5 Points
June 21, 2010
The National Association of Home Builders/Wells Fargo reported the housing market index decreased five points in June to 17. Economists believed the reading would be 21. This drop was the largest seen in the market since November of 2008. Any reading that is below 50 shows a negative outlook.
The Mortgage Bankers Association reported their seasonally adjusted composite index of mortgage applications for the week that ended June 11 rose 17.7%. Refinancing applications rose 21.1% to the highest level seen this year. Purchase volume increased 7.3%, which is the first increase seen in the last six weeks.
In May, construction of apartments and new single-family houses decreased 10%, which is a seasonally adjusted yearly rate of 593,000 units. New building application permits decreased 5.9% to a yearly rate of 574,000 units.
The producer price index (tracks wholesale price inflation) saw a decrease of 0.3% in May, with a 0.1% increase in April. Core prices not including food and fuel increased 0.2% for the second month in a row. Wholesale prices are up 5.1% for the year.
In May, consumer prices fell a seasonally adjusted 0.2% after a 0.1% increase in March. This was the largest decline seen since December of 2008. When looking at the year-over-year basis, consumer prices at the core rate were up 0.9%, which is the smallest increase since January 1966. These figures do not include volatile food and energy prices.
Unemployment initial claims benefits increased by 12,000 to reach 472,000 for the week ending with June 12. Continuing claims for the week ending with May 5 increased by 88,000 to end at 4.57 million.
Economic reports upcoming include June 29 housing price index, July 1 pending home sales, and on July 2 factory orders.
8 Comments to Housing Market Decreased 5 Points
Comments
that was alarming..government should do something with it.
Recent recession have made negative effect on almost every industry and when is comes to real estate industry there is no difference and I believe that things would not going to be much better in recent future too
Great post I have found this very useful for me.
Really alarming numbers. And quite surprising I think. I thought the market was starting to move in the direction way again.
Thanks for letting us know whats happening in the Industry of Housing. It was indeed very alarming. But I think the Government will do something in order for this to be resolve. Thanks for sharing this.
I think these figures will change in the last quarter of the year because many businesses have already recovered from crisis. I do believe the government is taking some actions regarding this situation.
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A real estate bubble is a type of economic bubble that occurs periodically in local, regional, national or global real estate markets. A housing bubble is characterized by rapid increases in the valuations of real property such as housing until unsustainable levels are reached relative to incomes
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The sudden weakness in residential real estate has struck nearly every region of the country, according to recent government and industry data, driving down sales of new and previously owned homes alike in May. On Thursday, the National Association of Realtors said an index that measures sales contracts signed on existing homes plunged 30 percent in May, more than twice what analysts had forecast, to the lowest level since the group started tracking the numbers in 2001.thompson44
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