• Corporate
  • News
  • Market Recap: Housing Market Index Soars, Housing Starts and Building Permits Increase, Existing Home Sales Decline

Market Recap: Housing Market Index Soars, Housing Starts and Building Permits Increase, Existing Home Sales Decline

  • December 20, 2019

CMG image

Mortgage rates did not move significantly this week, ahead of next week’s shortened holiday week.  The National Association of Home Builders’ (NAHB) housing market index improved, boosted by low mortgage rates and higher buyer demand.  Housing starts and building permits each increased, also.  Existing home sales, however, fell.

The NAHB housing market index jumped five points in December to a level of 76, the highest level since June 1999.  Current sales conditions surged to a level of 84, sales expectations for the next six months climbed to 79, and buyer foot traffic increased to 58.  Any reading above 50 is considered positive.  Strong buyer demand, lower mortgage rates, and a strong job market are creating positive conditions for home builders.

Housing starts and building permits each increased in November.  Housing starts increased 3.2% month-over-month and 13.6% year-over-year to a seasonally adjusted annual pace of 1.37 million.  Building permits also increased, up 1.4% month-over-month and 11.1% year-over-year to a seasonally adjusted annual rate of 1.48 million. 

Existing home sales or resales declined in November, down 1.7% month-over-month to a seasonally adjusted annual rate of 5.35 million.  Fewer available homes for sale may be hurting this figure.  The number of homes for sale has fallen 5.7% year-over-year to approximately 1.64 million units. 

Mortgage rates will likely stay low heading into 2020.  Home buyers looking to make a purchase and homeowners looking to refinance will continue to take advantage of historically low rates.  If you’d like to compare your current mortgage payment with a lower rate, check out our mortgage calculators.

 

Sources: CNBC, Econoday, MarketWatch, MarketWatch, Mortgage News Daily

  • Facebook Icon
  • Linked In Icon
  • Twitter Icon
  • Google Plus Icon

Latest Tweets

© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Broker and Lender #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (http://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1820).