Homebuilder Confidence Up, Mortgage Applications Down
Homebuilders nationwide have more confidence in the sellers’ market for single-family homes in April 2015 than they did in March. According to the results from the Home Builders Index (HBI)—which is released every month by the National Association of Home Builders (NAHB) and Wells Fargo—the national index went up 4 points in April to 56 points from 52 last month. That is much higher than the tie for the survey’s record low of 9 points in December 2008, recorded during the recession. Homebuilders with on-the-ground knowledge have been responding to the survey since 1985, and they give a score (0-100) based on current home sales, expected sales in the next six months, and on current homebuyer traffic.
Even as builders have greater optimism about the housing market, the number of people applying for mortgages dropped 2.3 percent in the week ending on April 10th compared to one week earlier — due to rates for non-FHA 30-year mortgages inching higher.
Conforming no point 30-year fixed rates average 3.75 percent while 15-year rates average 3.0 percent.
For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.