• Chuck Biggs
  • News
  • Market Recap: Solid Retail Sales, Surge in Housing Starts, and Rising Rates

Market Recap: Solid Retail Sales, Surge in Housing Starts, and Rising Rates

  • November 18, 2016

Mortgage Rates are on the rise this week, but have leveled out a bit after sharp increases.  According to the Mortgage Bankers Association, mortgage rates saw the biggest week over week increase since June 2013, and surpassed the highest level since January of this year. 

Retail sales posted healthy gains up 0.8% from September to October.  A strong job market and income growth have contributed to the increase in consumer spending.  Automotive sales hit an 11-month high up 1.1%, and internet retailers jumped 1.5%.  September’s increase was readjusted to 1% from 0.6% after a 0.2% decline in August was revised to show no change.

The home builders’ index did not change from October to November, and remains at a steady 63.  Any score higher than 50 indicates a stable housing market, suggesting that builders view the conditions as good.   Regionally, the Northeast, Midwest, and West each posted 2-point gains, and the South remained unchanged.

Housing starts are up 25.5%, reaching the highest level since 2007.  Building permits are also up, 0.3% from September to October and up 4.6% on a year-over-year basis.  The construction surge is driven by job growth and an increase in housing demand as more first time homebuyers are joining the market.

There were solid gains across the board this week in retail sales, housing starts and building permits.  The home builders’ index showed no change, but any reading above 50 indicates a stable housing market. After rapid increases, mortgage rates are settling down.


Sources: MarketWatch, CNBC, Wall Street Journal, HousingWire, HousingWire

Chuck Biggs
Branch Manager
NMLS # 396834
Branch NMLS # 1697333

Chuck Biggs

PHONE: (480) 258-2281

CMG Image
© 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 Lender License #MC1820 and Mortgage Broker License #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 (www.nmlsconsumeraccess.org).