• Kevin Long
  • News
  • Market Recap: Housing Market Index Up, Housing Starts Surge, Building Permits Increase

Market Recap: Housing Market Index Up, Housing Starts Surge, Building Permits Increase

  • November 17, 2017

Mortgage rates trended downward this week, ahead of next week’s holiday.  Retail sales activity slowed, but remains positive.  The housing market index surged, despite some home builders’ reservations regarding the proposed tax plan.  Housing starts soared and building permits increased as well. 

Retail sales activity slowed in October, but was still positive, up 0.2% month-over-month.  Less autos, sales were up 0.1% month-over-month and less autos and gasoline, sales were up 0.3% month-over-month.  The strong September gain was driven by hurricane recovery, as victims replaced storm-damaged vehicles and other personal items.  This month’s moderate gain was strongly influenced by automotive sales, specifically, up 0.7% month-over-month, but overall consumer spending has slowed. 

The National Association of Home Builders’ (NAHB) housing market index hit an 8-month high in November, rising to 70, four points above October’s reading.  Current sales conditions increased to a level of 77, expectations for the next six months dropped one point to 77, and buyer foot traffic increased to 50, the first neutral reading in six months.  Any reading above 50 is considered positive.  Despite expressing discontent with the latest proposed tax changes, home builders remain confident. 

In November, housing starts soared, up 13.7% to a seasonally adjusted annual rate of 1.29 million units.  Building permits also climbed, up 5.9% to a level of 1.297 million units.  Growth was driven by gains in the South, as post-hurricane reconstruction continues.  Housing starts and building permits are used to gauge future housing activity like new home sales. 

The House of Representatives passed the GOP tax reform proposal on Thursday with a vote of 227 to 205.  The Senate will vote on their proposal next, which differs from the House proposal in a number of ways.  President Trump’s goal is to finalize legislation before Christmas, a move that would impact tax filings as early as 2018.


Sources: Bloomberg, CNBC, CNBC, MarketWatch, Mortgage News Daily, The New York Times

Kevin Long
Area Sales Manager
NMLS # 195255
Branch NMLS # 1108042

Kevin Long

PHONE: (615) 567-8901

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).