Category Archives: Market Outlook

What’s Ahead For Mortgage Rates This Week – June 1, 2015

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Whats Ahead For Mortgage Rates This Week June 1 2015Last week’s economic reports included the Case-Shiller Home Price Indexes, FHFA’s House Price Index and Pending Home Sales from the Commerce Department. The details:

Home Prices Dip in March, Pending Home Sales Up

According to the Case-Shiller 20-City Housing Market Index, the national reading for average home prices dipped in March. The 20-City Index moved from February’s year-over-year home price growth of 4.20 percent to an average year-over-year home price growth rate of 4.10 percent in March. San Francisco, California reclaimed the top spot for home price growth of 10.30 percent year-over-year.

The Federal Housing Finance Agency reported results that mirrored the Case-Shiller report. The FHFA House Price Index tracks purchase-only transactions for homes connected with mortgages owned or backed by Fannie Mae and Freddie Mac. The March reading for home price growth slipped to 5.20 percent year-over-year as compared to February’s reading year-over-year growth rate of 5.50 percent. Lingering winter weather conditions were seen as a contributing factor to lagging home prices.

Meanwhile, the Commerce Department provided some good news for pending home sales. April’s pending sales reading increased to 3.40 percent from the March reading of 1.20 percent. Pending home sales are considered an indicator of future closings and suggest that the peak home selling and buying season is gaining momentum.

Sales of new homes in April brought spring home sales to their highest level in seven years. New home sales rose to an annual rate of 517,000 homes sold in April as compared to expected sales of 490,000 new homes sold and March’s reading of 484,000 new homes sold. The Midwest led the charge where new home sales surged by 36.80 percent. The latest readings for pending and new home sales suggest that 2015 can expect a healthy sales activity during the spring and summer.

Mortgage Rates, Weekly Jobless Claims Rise

Average mortgage rates rose last week according to Freddie Mac. The rate for a 30-year fixed rate mortgage rose by three basis points to 3.87 percent; discount points dropped from 0.70 percent to 0.60 percent. The average rate for a 15-year fixed rate mortgage rose by six basis points to 3.11 percent with discount points lower at 0.50 percent than the previous week’s average of 0.60 percent. The average rate for a 5/1 adjustable rate mortgage rose by two basis points to 2.90 percent. Discount points were unchanged at 0.50 percent.

Weekly jobless claims rose to 282,000 new claims filed as compared to expectations of 270,000 new claims and the prior week’s reading of 275,000 new claims filed. In spite of the higher reading for new jobless claims, analysts said that layoffs are few and far between. New jobless claims hit their highest level in five weeks, but remain close to a 15-year low. The four-week rolling average of jobless claims increased by 5000 new claims to a reading of 271,500 new jobless claims filed. The four-week average is considered a more reliable source for tracking unemployment trends as it evens out highs and lows that occur in weekly readings.

What’s Ahead

This week’s economic reports include Construction spending and several labor-related news topics including Non-Farm Payrolls, the National Unemployment Rate and Average Hourly Earnings. Analysts expect improving labor conditions to further bolster housing markets.

Case-Shiller Home Prices: San Francisco, Denver see Double-Digit Increases

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Case Shiller Home Prices San Francisco Denver see Double Digit IncreasesSan Francisco, California where home prices rose 10.30 percent year over year in March, and Denver, Colorado with an even 10 percent gain in year-over-year home prices led the Case-Shiller 20-City Composite Index for March. Rounding out the top-five cities for year-over-year home price growth were Dallas Texas at 9.30 percent, Miami, Florida at 8.70 percent and Tampa, Florida with a year-over-year average gain in home prices at 8.10 percent. San Francisco’s reading for March was the first double-digit increase in home prices since last July.

The five lowest year-over-year price gains occurred in Washington, D.C. and Cleveland, Ohio tied at gains of 1.0 percent, New York City with a year-over-year gain of 2.70 percent, Minneapolis, Minnesota with a gain of 3.00 percent and Phoenix, Arizona with a year-over-year increase of 3.10 percent.

Overall, the Case-Shiller 20-City Home Price Index rose by 5.0 percent year-over-year and by 0.90 percent in March. Analysts said that while home prices remain 16 percent below their pre-recession peaks, home prices are 31 higher than the lows recorded in March 2012.

When asked if house prices are in a bubble, David Blitzer, chairman of the S&P Index Committee said that “The only way to tell if housing prices were in a bubble is looking back after it’s over.” Mr. Blitzer said that adjusted for inflation, home prices have increased on average by one percent per month since 1975, and that the current 4.10 percent monthly growth of home prices could suggest a bubble. Mr. Blitzer cautioned that home price increases are outpacing increases in personal income and national wage growth, a circumstance which reduces the pool of potential home buyers due to affordability issues.

FHFA House Price Index Posts 5.2 Percent Gain Year-Over-Year

The Federal Housing Finance Agency (FHFA) reported that as of March, prices for homes connected with Fannie Mae and Freddie Mac mortgages rose by 5.20 percent year-over-year. The agency also said that average home prices increased by 1.30 percent in the first quarter of 2015.

Home prices were 5.0 percent higher in the first quarter of 2015 than for the first quarter of 2014. This data is consistent with the unrelated Case-Shiller home price data for March. FHFA reported that home prices rose in 48 states between the first quarters of 2014 and 2015. The states with the top rates of year-over-year home price growth were:

Colorado 11.20 percent

Nevada 10.10 percent

Florida 8.70 percent

Washington 7.60 percent

California 7.50 percent

The Mountain Division led the nine Census Bureau Divisions in home price growth with a growth rate of 2.60 percent in the first quarter and a year-over-year growth rate of 6.80 percent.

What’s Ahead For Mortgage Rates This Week – May 26, 2015

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Whats Ahead For Mortgage Rates This Week May 26 2015Last week’s economic reports included several readings related to housing The Wells Fargo/National Association of Home Builders Housing Market Index, the Commerce Department’s releases on Housing Starts and Building Permits, and the National Association of Realtors® report on Existing Home Sales supplied mixed news on recent developments in housing. Freddie Mac and the Labor Department released their usual reports on mortgage rates and weekly jobless claims. The details:

NAHB: Builder Confidence Slips, But Remains Positive

The Wells Fargo/ National Association of Home Builders (NAHB) released its Housing Market Index report for April. Although April’s reading was two points lower at 54, any reading over 50 indicates that more builders consider housing market conditions positive than not. April’s reading on builder confidence was the 11th consecutive index reading over 50.

According to NAHB, builder confidence in present housing market conditions dropped by two points to a reading of 59, while builder confidence in market conditions over the next six months rose one point to 64. Builder expectations for buyer foot traffic dropped by one point to 39. The lower readings for buyer traffic could be related to more home shoppers starting their home search online.

Building Permits, Housing Starts Show Improvement

The Commerce Department reported that building permits for April were higher at 1.14 million as compared to the March reading of 944,000 permits issued in March. Analysts expected a reading of 1.03 million permits issued, This was the highest reading for building permits since mid-2008.

Housing starts rose by a noteworthy 20 percent to a reading of 1.14 million in April, but analysts cautioned that this reading was inconsistent with the more moderate pace of improvement in overall housing markets. The Commerce Department reported that starts of single family homes rose by 17.60 percent to a reading of 666,000 starts. This was the highest rate of single-family starts since early 2008, but analysts noted that April’s high reading for housing starts could reflect delayed starts that were impacted by winter weather.

Existing Home Sales Fall Due to Rising Home Prices

The National Association of Realtors® reported that sales of previously owned homes dropped as home prices increased. A tight supply of available homes and higher home prices slowed the sales pace of existing home sales. April sales of existing homes fell from the March level of 5.21 million sales to 5.04 million sales; analysts had forecasted a higher sales volume of 5.24 million existing homes sold.

Rising home prices pose challenges to first-time and moderate income home buyers, and strict mortgage standards can make it tough for those with less than stellar credit scores to qualify for mortgages. Rising home prices are good news for homeowners as bidding wars have been reported in high-demand areas.

Mortgage Rates Lower, Jobless Claims Up

Freddie Mac reported that average mortgage rates were slightly lower. Mortgage rates for a 30-year fixed rate mortgage dropped by one basis point to 3.84 percent. Discount points rose from 0.60 to 0.70 percent. Mortgage rates for a 15-year fixed rate mortgage averaged 3.05 percent with average discount points of 0.60 percent. The average rate for a 5/1 adjustable rate mortgage was one basis point lower at 2.88 percent; discount points were unchanged at 0.50 percent.

Weekly jobless claims rose to 274,000 new claims filed. This reading exceeded expectations of 269,000 new claims and the prior week’s reading of 264,000 new claims. Analysts said that although this was a four-week high for new unemployment claims, layoff s remain low. Year-over-year, new jobless claims were 16 percent lower. New jobless claims remain close to a 15-year low and layoffs hit their lowest level on record. This news could build prospective home buyer confidence as job security plays a major rrole in most decisions to buy a home.

What’s Ahead

This week’s housing related reports include the S&P Case-Shiller 10 and 20-City Home Price Indexes and the FHFA Home Price Index. New and Pending Home Sales reports and the usual mortgage rates and weekly jobless claims reports are also scheduled.

What’s Ahead For Mortgage Rates This Week – May 18, 2015

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Whats Ahead For Mortgage Rates This Week May 18 2015Last week’s economic reports included data from the Federal Reserve on student loan debt, job openings and retail sales. Weekly jobless claims and Freddie Mac’s survey of average mortgage rates were released as usual on Thursday. A report on consumer sentiment wrapped up the week’s scheduled economic new.

Federal Reserve: Student Loan Borrowers Struggle with Payments 

In two reports issued by the New York and St. Louis branches of the Federal Reserve, researchers found that high numbers of student loan borrowers are behind in making payments. According to the New York Fed, 11.10 percent of student loan borrowers were 90 or more days past due on their payments during the first quarter of 2015.

This is a slight improvement over the fourth quarter of 2014, when 11.30 percent of student loan borrowers were 90 or more days behind with their payments. The Fed notes that these percentages do not include borrowers who are behind on payments but who are not required to make payments due to forbearance or other approved payment deferrals. 

The burden of student loan debt is a serious consideration for the housing sector, as student loan debt can keep would-be buyers from qualifying for mortgages needed to buy homes. Worse, delinquency on student loans can damage borrowers’ credit and create further obstacles to getting a mortgage.

Job Openings, Retail Sales Lower

The Labor Department reported that job openings fell to 4.99 million in March as compared to February’s reading of 5.14 million job openings. March job openings increased by 19 percent year-over-year. There were about 1.72 job seekers for each job opening in March, which is lower than the reading of 1.77 job seekers per job when the recession started in December 2007.

Retail sales were unchanged in April against an expected increase of 0.10 percent and the March reading of 1.10 percent. Retail sales without the automotive sector expanded by 0.10 percent against expectations of 0.40 percent growth and March growth of 0.70 percent. Increasing fuel prices and skepticism over economic conditions likely contributed to slack retail sales.

Mortgage Rates Mixed, Jobless Claims Lower

Weekly jobless claims provided some good news as they came in at 264,000 new claims against expectations of 275,000 new claims and the prior week’s reading of 265,000 new jobless claims. This was the third consecutive week that new jobless claims were less than 270,000; this has not occurred since 1975.

Freddie Mac reported that average rates for fixed rate mortgages rose, while the average rate for a 5/1 adjustable rate mortgage ticked downward by one basis point. The average rate for a 30-year fixed rate mortgage rose by five basis points to 3.85 percent. The average rate for a 15-year fixed rate mortgage also increased by five basis points to 3.07 percent. Discount points averaged 0.60 percent for fixed rate mortgages and 0.50 percent for 5/1 adjustable rate mortgages.

Consumer sentiment as reported by the University of Michigan dropped to a seven month low of 88.6 as compared to April’s reading of 95.9 and an expected reading of 94.9. Consumers are concerned about the economy and their personal finances. The reading for consumer sentiment prior to the recession averaged 86.9 over the year prior to the recession. Economists cited weak wage growth and rising fuel prices as contributing causes of consumer uncertainty.

What’s Ahead

This week’s scheduled economic news includes a number of housing-related reports. The NAHB Home Builders Housing Market Index, The National Association of Realtors® Existing Home Sales report, Housing Starts and Building Permits and the minutes of the Fed’s last FOMC meeting are set for release. Freddie Mac mortgage rates and Weekly Jobless Claims will be released as usual on Thursday.

 

 

What’s Ahead For Mortgage Rates This Week – May 11, 2015

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Whats Ahead For Mortgage Rates This Week May 11 2015Last week’s scheduled economic reports primarily revolved around the jobs sector. The federal government released reports on Nonfarm Payrolls, the national unemployment rate and weekly report on new jobless claims. ADP issued its monthly report on private sector payrolls. Readings on labor statistics are important to housing markets as stable employment conditions are a significant consideration for prospective home buyers.

Private-Sector Job Creation Falls, Non-Farm Payrolls Rise

According to ADP, private-sector payrolls fell by 6000 jobs in April to a reading of 169,000 new jobs. This was the fifth consecutive monthly drop in new private sector jobs. ADP also adjusted its March reading to 175,000 new private-sector jobs.

The U.S. Commerce Department reported that Nonfarm Payrolls rose by 223,000 in April after a bleak reading of 85,000 new jobs added in March. Analysts said that all economic sectors added jobs in March with the exception of the energy sector. More workers joined the labor force in April, which suggests that jobs are easier to find.

Unemployment Dips to Lowest Rate since 2008

The national unemployment rate fell to 5.40 percent in April, which was the lowest reading since 2008. While a low unemployment rate is good news for job seekers, it will likely prompt the Federal Reserve to raise its target interest rate sometime this year. Analysts expect that if current economic conditions hold steady, the Fed may raise rates in September. Fed policymakers have consistently stated that any decisions to raise rates would be based on careful review of current domestic and foreign economic trends. When the Fed does raise rates, mortgage rates are expected to increase.

Mortgage Rates, Jobless Claims Rise

Freddie Mac reported that mortgage rates jumped across the board last week. The rate for a 30-year fixed rate mortgage rose from 3.68 percent to 3.80 percent; the average rate for a 15-year mortgage rose from 2.94 percent to 3.02 percent. The average rate for a 5/1 adjustable rate mortgage rose from 2.85 percent to 2.90 percent. Discount points for fixed rate mortgages were unchanged at 0.60 percent, but dropped from an average of 0.50 percent to 0.40 percent.

Weekly jobless claims also rose, but were lower than expected at 265,000 new jobless claims filed against an expected reading of 277,000 new claims. The prior week’s reading was unrevised at 262,000 new claims filed. New jobless claims remained close to a 15-year low.

While economists note that labor market conditions are improving, wages increased at a year-over-year rate of 2.20 percent as compared to the normal year-over-year increase of 3.00 percent.

What’s Ahead

This week’s economic reports include more readings on labor market conditions along with reports on retail sales and consumer sentiment. Readings for weekly jobless claims and Freddie Mac’s mortgage rates report will be released as usual on Thursday.

What’s Ahead For Mortgage Rates This Week – May 4, 2015

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Whats Ahead For Mortgage Rates This Week May 4 2015Last week’s economic news included S&P Case-Shiller Home Price Index reports, the Fed’s FOMC meeting statement and pending home sales. Freddie Mac mortgage rates and weekly jobless claims were also released as usual. The details:

Case-Shiller: Denver Leads Home Price Gains in February

The S&P Case-Shiller 20-City Home Price Index showed that home prices continue to appreciate, but at a slower rate than in previous years. Home prices increased at a seasonally-adjusted year-over-year rate of 4.20 percent in February as compared to the February 2014 reading of 4.40 percent.

Denver, Colorado led February’s year-over-year home price appreciation rates with a reading of 10.00 percent. San Francisco, California followed closely with a year-over-year reading of 9.80 percent and Miami Florida reported year-over-year home price gains at 9.20 percent.

FOMC Statement: Fed Expects Moderate Economic Growth

In its customary post-meeting statement the Federal Open Market Committee (FOMC) the Fed repeated its projections for moderate economic growth, but again kept its options open for raising the target federal funds rate, which currently ranges between 0.00 and 0.250 percent. The Fed noted that inflation remains below its goal of 2.00 percent, largely due to earlier decreases in fuel prices. FOMC indicated it will be monitoring inflation data closely.

FOMC members agreed not to raise the target federal funds rate, but said that FOMC will closely monitor data on its dual mandate to achieve maximum employment and an inflation rate of 2.00 percent. Labor market conditions, readings on expected and actual inflation rates and domestic and international economic developments will be considered before the FOMC raises the target federal funds rate. When the Fed does raise rates, mortgage rates can also be expected to rise.

Mortgage Rates Rise, Jobless Claims Fall to 15 Year Low

Average mortgage rates rose last week according to Freddie Mac. The average rate for a 30-year fixed rate mortgage rose by three basis points to 3.68 percent; the average rate for a 15-year fixed rate mortgage rose by two basis points to 2.94 percent. The average rate for a 5/1 adjustable rate mortgage increased by one basis point to 2.85 percent. Discount points for fixed rate mortgages were unchanged at 0.60 percent and rose from 0.40 to 0.50 percent for 5/1 adjustable rate mortgages.

Weekly first-time jobless claims were lower than expected with a reading of 262,000 claims filed against expectations of 287,000 new claims filed and the prior week’s reading of 296,000 claims filed. This was the lowest reading for new jobless claims in 15 years. The four-week rolling average of new jobless claims fell by 1250 claims to a reading of 283,750 new claims filed. Analysts typically rely on the four-week rolling average reading as it softens the effects of volatility that can occur from week to week.

What’s Ahead

Next week’s scheduled economic reports are dominated by employment related data including the National Unemployment Rate, Non-Farm Payrolls and the ADP Employment report. Weekly jobless claims and Freddie Mac’s Primary Mortgage Market Survey will be released as usual on Thursday.

Case-Shiller: 20-City Home Price Index Hits 6 Month High

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Case Shiller 20 City Home Price Index Hits 6 Month HighAccording to the Case-Shiller 20-City Home Price Index for February, month-to-month home prices increased by 0.50 percent from January’s reading and achieved the highest year-over-year gain in six months. Analysts expected February home prices to increase by 4.80 percent. David Blitzer, chairman of the S&P Dow Jones index committee, said that home prices continue to rise and outpace both inflation and wage gains. Although this is great news for homeowners, it also demonstrates the challenge of affordability for home buyers.

Year-Over-Year Home Prices: Denver Leads in Home Price Gains

Home prices in Denver, Colorado increased by 10 percent year-over-year in February; San Francisco, California home prices gained 9.80 percent year-over-year. Miami, Florida home prices gained 9.20 percent year-over-year. Dallas, Texas and Portland, Oregon rounded out the top five cities with the highest year-over-year home price appreciation in February. Home prices in Dallas increased by 8.60 percent, while and Portland’s home prices gained 7.10 percent year-over-year.

February readings for year-over-year home price growth were lowest in Washington, DC at 1.40 percent. Cleveland, Ohio and New York, New York posted year-over-year gains of 2.30 and 2.50 percent respectively. Phoenix, Arizona home prices grew by 2.90 percent and Minneapolis, Minnesota home prices gained 3.10 percent year-over-year.

Chicago, Illinois and Detroit Michigan posted year-over-year gains of 3.40 percent and 3.7- percent. Both cities have shown the smallest gains in prior months but home prices are gaining in year-over-year readings.

San Francisco Tops Month-to-Month Home Price Growth

Price gains from January to February 2015 were led by San Francisco, California with a reading of 2.00 percent. Denver, Colorado home prices gained 1.40 percent; Seattle, Washington home prices gained 0.80 percent, and were followed closely by a gain of 0.80 percent in Los Angeles, California and a tie at 0.70 percent for Portland, Oregon and San Diego, California.

Cites showing negative readings and the lowest month-to-month price gains in February were Boston, Massachusetts at -0.20 percent; Cleveland, Ohio at -0.10 percent. Chicago held steady with 0.00 percent gain and Atlanta, Georgia and Minneapolis, Minnesota posted month-to-month gains of +0.10 percent.

Home prices remained about 16 percent below their 2006 peak at the end of February.

What’s Ahead For Mortgage Rates This Week – April 27, 2015

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Whats Ahead For Mortgage Rates This Week April 27 2015Last week’s housing related reports included the FHFA Home Price Index, the National Association of Realtors® Existing Home Sales report and The Commerce Department’s report on new home sales. Results were mixed, but suggest that housing markets are strengthening.

FHFA Home Prices Up in February, Existing Home Sales Highest in 18 Months

The Federal Housing Finance Agency reported that home prices associated with mortgages owned or backed by Fannie Mae and Freddie Mac rose from a 5.10 percent increase in January to a seasonally adjusted annual rate of 5.40 percent in February.

The National Association of Realtors® reported that sales of previously owned homes rose to 5.19 million in March as compared to expectations of 5.08 million sales and February’s reading of 4.89 million sales of pre-owned homes.

March sales represented a 6.10 percent gain over February sales; this was the highest volume of existing home sales in 18 months. Lawrence Yun, chief economist for NAR, said that if strong sales of pre-owned homes continue, 2015 could be the best year for existing home sales in nearly a decade.

New Home Sales Lag in March

The Department of Commerce reported that new home sales fell from February’s reading of 543,000 new homes sold to 481,000 new homes sold in March. Analysts expected a March reading of 503,000 new homes sold. This was the slowest pace for new home sales since November, but year-over-year, sales of new homes were 19.40 percent higher year-over-year. The national median home price fell by 1.70 percent to $277,400 year-over-year.

Sales of new homes decreased by 33 percent in the Northeast and fell by 16 percent in the South. New home sales fell by three percent in the West and rose by six percent in the Midwest. At the current sales pace, there is a 5.3 month supply of new homes for sale as compared to a 4.6 month supply in February. Analysts said that stagnant wage growth contributed to fewer home sales.

Mortgage Rates Lower, Weekly Jobless Claims

According to Freddie Mac’s weekly survey of mortgage lenders, average mortgage rates fell across the board last week. The average rate for a 30-year fixed rate mortgage fell by two basis points to 3.67 percent. The rate for a 15-year fixed rate mortgage also dropped two basis points to an average of 2.92 percent; the average rate for a 5/1 adjustable rate mortgage was four basis points lower at 2.84 percent. Discount points for a 30 year mortgage fell to 0.60 percent; points for a 15-year mortgage were higher at 0.60 percent and average discount points for a 5/1 adjustable rate mortgage fell from 0.50 to 0.40 percent.

Weekly jobless claims came in at 295,000 new claims filed; analysts expected a reading of 288,000 new claims and the prior week’s reading was 294,000 new claims filed. Spring break holidays were blamed for higher jobless claims and March job growth hit its lowest in more than a year. Analysts caution against reading too much into weekly fluctuations and prefer to use the four-week rolling average to identify trends in unemployment claims.

What’s Ahead

This week’s housing related economic reports include Case-Shiller 10 and 20 City Housing Market Index reports, the customary post-meeting statement from the Fed’s Federal Open Market Committee (FOMC) and pending home sales data.

What’s Ahead For Mortgage Rates This Week – April 20, 2015

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Whats Ahead For Mortgage Rates This Week April 20 2015Last week’s economic reports included the NAHB Wells Fargo Housing Market Index, Housing Starts, and Freddie Mac’s weekly survey of mortgage rates. Other news included the weekly jobless claims report and consumer sentiment for April.

Mortgage Rates, Jobless Claims Rise

Mortgage rates moved up according to Freddie Mac. The average rate for a 30-year fixed rate mortgage increased by one basis point to 3.67 percent. The average rate for a 15-year fixed rate mortgage also increased by one basis point to 2.94 percent.

The average rate for 5/1 adjustable rate mortgages rose by five basis points to 2.88 percent. Discount points rose from 0.60 percent for 30-year fixed rate loans to 0.70 percent and fell from 0.60 percent to 0.50 percent for 15-year fixed rate mortgages. Average points for a 5/1 adjustable rate mortgage held steady at 0.50 percent.

Weekly jobless claims rose to 294,000 against expectations of 281,000 new claims filed and the prior week’s reading of 282,000 new jobless claims filed.

Last week’s reports ended on a positive note with April’s Consumer Sentiment report. The April reading rose nearly three points to 95.9 as compared to the projected reading of 93.5 and March’s reading of 93.0.

Home Builder Confidence Increases, Housing Starts Up

The National Association of Home Builders Wells Fargo Housing Market Index (HMI) rose to a reading of 56 against the March reading of 52. Builder confidence rose in all three components comprising the HMI. Low mortgage rates and improved labor markets were cited as factors influencing builder confidence.

Regional markets showed mixed results. Three month moving averages showed that builder confidence rose by one point to a reading of 56 in the South; the reading for the Northwest was unchanged at 42. And the Midwestern region lost two points for a builder confidence reading of 54. The West lost three points for a builder confidence reading of 58. The NAHB says that any reading over 50 indicates that more builders are confident about housing market conditions than those who are not.

Housing starts rose in March according to the Department of Commerce, but fell short of expectations. 926,000 housing starts were reported with expectations of 1.04 million starts. February’s reading was 908,000 starts. Lingering winter weather conditions contributed to fewer than expected housing starts.

What’s Ahead

This week’s scheduled economic news includes reports on new and existing home sales, the FHFA Home Price Index and weekly reports on mortgage rates from Freddie Mac along with weekly jobless claims.

Home Builder Confidence Rises in April

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Home Builder Confidence Rises in AprilThe National Association of Home Builders (NAHB) reported that April’s Housing Market Index rose from a reading of 52 in March to 56 for April. This is in line with warmer weather and the peak home buying season in spring and summer. Readings over 50 indicate that more builders view market conditions as positive as those who do not. NAHB members cited lower mortgage rates and better labor market conditions as reasons they expect more home buyers to enter the market.

All Components of Builder Confidence Increase

The NAHB Home Builder Index is calculated from three components. The reading for confidence in current housing market conditions rose from 58 in March to 61 in April. Builder confidence for sales condition in the next six months rose from a reading of 59 to 64, which was the highest reading for 2015 so far.

Home builder confidence in buyer foot traffic moved from 37 to a reading of 41 in April. Lingering winter weather likely kept house hunters indoors in many areas. NAHB Chief Economist David Crowe said that the uptick in the NAHB Housing Market Index indicates that housing market conditions can be expected to improve throughout 2015.

Regional Housing Results Mixed, Fed Beige Book Cites Winter Weather

NAHB measures regional changes in housing markets on a three-month rolling average. April’s results were mixed.

Builder confidence in the southern region increased from 55 to 56 in April. The northwestern region was unchanged from March to April at 42. Builder confidence in Midwestern housing markets fell by two points from 56 to 54. The western region saw builder confidence fall three points from the March reading of 61 to April’s reading of 58.

In an unrelated report, the Federal Reserve also released its Beige Book report which is a collection of anecdotes from business contacts throughout the nation. Winter weather conditions were prominently mentioned in the Beige Book report and were seen as detrimental for housing conditions.

The Beige Book report also mentioned layoffs caused by low oil and gas prices. This could negatively influence housing market conditions in regions where oil and gas provide many jobs and contribute to local economies.