April Housing Starts fell to a new record low this morning, down 12.8% to 458K units

April Housing Starts fell to a new record low this morning, down 12.8% to 458K units.  The April decline was due in most part to a 42% drop in multi-family housing units.  Single family homes were not much better, falling to a record low 185K units.  The West had a good month, up 26.6% while the Midwest rose 14.3%.  The Northeast however slipped 13.6% and 4.6% in the South.  Building Permits did not escape the beating, falling to a record low 494K units. 

 

While we see a stabilizing housing market in the making, the time period to work off the inventory and regain its health will take the balance of this year at a minimum. 

 

After an early flurry, trading has gone quite with most markets hanging around unchanged.  The 10 year note is off 6/32’s (yield 3.24%), mortgage backs are off 1/32nd, and stocks are up a nickel on the big board.  Trading volume is running at only 80% of the norm, giving us a preview of what “summer time blues” trading is all about.  Readings on our chart work have turned neutral/bearish on daily time frames but overall, we see the market at “value” will little movement either way.  For your reference, a close above 3.25% on the note (bad) or a close below 3.18% (good) will be needed to move the market.

About Max Leaman Austin Mortgage

GREAT RATES, LOW FEES, CLOSE ON TIME™ ---- 2012 Ranked #1 Austin Residential Mortgage Lender (Austin Business Journal) 2010, 2011 & 2012 Five Star Professional (Texas Monthly) 2009, 2010, 2011, 2012, 2013 PrimeLending Chairman's Circle Award 2009, 2010, 2011, 2012 Scotsman Guide Top Originator (Top 200 Mortgage Professionals in U.S.A.) Better Business Bureau "A+ Rating" National Lender Rankings (Scotsman Guide): Top Purchase Volume (No. 10) Most Loans Closed (No. 32) Top Dollar Volume (No. 88)

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