Tag Archives: Housing
The average rate on the 30-year mortgage has risen above 6.00% in response to the latest hike in the Fed Funds target rate. Freddie Mac’s Primary Mortgage Market Survey pegged the average rate at 6.29% this week. The CME’s Fed … Continue reading
The housing market has been quite strong since shortly after the onset of the pandemic, fueled by low interest rates, pent-up demand and a strong desire among urban apartment dwellers to escape the coronavirus. New home sales from May 2020 … Continue reading
2020 was a surprisingly solid year for housing in light of the pandemic and the havoc that it wreaked in other parts of the economy. December data will not be reported until later this month. I project that single-family housing … Continue reading
The outlook for housing (or more precisely, sentiment about the outlook for housing) has improved in recent weeks, primarily because of the decline in mortgage rates. The average rate on the 30-year mortgage has fallen by 57 basis points (bp) … Continue reading
It has certainly been a rough year for homebuilding stocks, but not nearly so bad for the housing market. The Lark Research Homebuilder Stock Price Index, an equal weighted average of eleven publicly-traded homebuilder stocks, was down 29.2% year-to-date through December 7. By comparison, the S&P 500 has declined 1.5% and the Russell 2000 has declined 5.7%. Continue reading
Last week, stocks fell sharply. The S&P 500 ended the week down 5.16% in price. The Lark Research Homebuilder Stock Price Index fell 6.02%, underperforming the broader market.
Housing market activity has strengthened in recent months. This has raised the hope of another leg up in the recovery. Yet, investors are still skeptical about the industry’s future prospects.
KB Home (KBH) was the sixth largest builder in the U.S. in 2016, according to Builder Magazine. The company operates in four regions, nine states and 39 metropolitan markets. It generates most of its sales in California, with operations in … Continue reading
So far, the stock market appears to be anticipating a slowdown in economic activity, but not necessarily a recession. Some think that the decline in stocks might actually cause an economic pullback (consistent with George Soros’s concept of reflexivity). Certainly, … Continue reading
Homebuilding stocks have been crushed since the beginning of the year and especially over the past few weeks. The Lark Research Homebuilder Stock Price Index, (an equal-weighted price-only weekly index of the share prices of 12 publicly-traded homebuilders, rebalanced at … Continue reading