Notable News
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Market Recap
According to the National Association of Home Builders (NAHB) housing market index, builder confidence increased to positive territory in February, rising to a level of 51. This surged past expectations of a level of 48. Any reading above 50 is considered positive. Not only is this the highest level of confidence in eight months, but it is much higher than it was this time last year (a level of 44). In fact, all three of the index’s components exceeded their levels from March 2023.
Housing starts and building permits also outperformed in February. Building permits were at a seasonally adjusted annual rate 1,518,000 – a 1.9% increase from the month before. The expected level was 1,500,000. Housing starts were at a seasonally adjusted annual rate of 1,521,000 in February, a whopping 10.7% increase from the month before. The expected level was 1,430,000.
Mortgage application submissions slipped a composite 1.6% during the week ending 3/15. The refinance index decreased 3% while the seasonally adjusted purchase index decreased 1%.
The Fed did not raise or cut interest rates at this month’s Federal Open Market Committee (FOMC) meeting. It did, however, release rate cut projections for the remainder of the year, which played to the favor of the bond market, and consequently mortgage rates.
Continuing jobless claims were relatively unchanged during the week ending 3/9, rising just 4,000 to reach a level of 1,807,000. Initial jobless claims were relatively unchanged as well, falling by 2,000 during the week ending 3/16, down to a level of 210,000.
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