Housing Market Index Rose Unexpectedly
February 22, 2010
The National Association of Home Builders/Wells Fargo housing market index rose two points in February to 17. It was the first gain in five months. Economists had anticipated a dip to 14. An index reading below 50 indicates negative sentiment about the housing market.
The combined construction of new single-family homes and apartments in January rose 2.8% to a seasonally adjusted annual rate of 591,000 units. However, applications for new building permits, seen as an indicator of future activity, fell 4.9% to 621,000 units.
Industrial production at the nation’s factories, mines and utilities increased 0.9% in January, following an upwardly revised 0.7% gain during the month of December. This was good news as it was the seventh consecutive monthly increase. The overall factory-operating rate rose to 72.6% of capacity in January from 71.9% in December.
The producer price index, which tracks wholesale price inflation, rose 1.4% in January, During December we the report was upwardly revised to a 0.4% increase in the month of December. Economists had expected a gain of 0.8%. The gains were largely due to higher energy costs.
Initial claims for unemployment benefits rose by 31,000 to 473,000 in the week ending February 13. Continuing claims for the week ending February 6 held steady at 4.538 million applicants. Experts believe snowstorms in early February may have cost the economy as many as 100,000 jobs.
The index of leading economic indicators — designed to forecast economic activity in the next three to six months — rose a smaller-than-expected 0.3% in January after a revised 1.2% gain in December. It was the 10th straight monthly increase and the longest series of gains since 2004.
Consumer prices rose 0.2% in January. Excluding energy and food, the so-called core index unexpectedly slipped 0.1%, the first monthly decline since December 1982.
The Federal Reserve Board raised the discount rate charged to banks by a quarter-point to 0.75%.
Upcoming on the economic calendar are reports on the housing price index.
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3 Comments to Housing Market Index Rose Unexpectedly
Comments
I saw in recent year Consumer prices rising high day to day. This should be stop by government.
Not a bad set of stats for the property market! Surprising to see energy costs falling!
Nowadays property rate is in peak . i had read a report of outlook magazine. The report takes cities from Dubai to Shanghai from various parts of the world and it gives exclusive information about the prices, market changes, global wealth and risks.
Some of the main points are:
1. High end residential property is considered the best asset to own.
2. 71% respondents consider 2010 will be a good year for property investments, whereas 68% equities, 67% hedge funds, 41% cash, 38% gold, 36% derivatives and 27% bonds. Gold and cash was also low in the list and the high net-worth global investors believe that in the year 2010, highest returns will be generated from equities 31%, hedge funds 25% and then property 21%.
3. 33% of the high net-worth individuals’ investment portfolios are on properties.
4. Properties are preferred for long term investments instead of quick income.
5. It is reported that New York price per square foot, is less than London, Paris, Geneva and Tokyo, and New York ranked number 1 city, for quality of life.
U.S. property market is set to rebound supported by government policies of tax credit and low mortgage rates and renown real estate company.
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