Homebuilder Stocks Tumble As Housing Starts Fall By 14.7%: 'A Poor Time To Buy A Home,' Says Economist

Homebuilder stocks face sharp declines as the SPDR Homebuilders ETF drops 1.8% in Tuesday's session. Sharp decline in housing starts in March 2024 marks the lowest level since Feb. 26, 2024. The U.S. Housing market shows signs of cooling due to rising mortgage rates and economic uncertainty.

U.S. Housing Downturn Deepens as Mortgage Rates Rise, Manufacturing Sees Uplift

U.S. Housing starts fell by 12.4% in March due to rising mortgage rates and a shortage of existing homes for sale. The overall housing starts plummeted by 14.7%, the largest decline since April 2020. The manufacturing sector is showing signs of recovery, suggesting a potential turnaround for the sector.

XHB, BLD, JCI, NVR: ETF Outflow Alert

Weekly Report: what happened at XHB last week (0408-0412)?

Homebuilder Stocks Are Sending an Ominous Warning for the Housing Market

Homebuilder stocks serve as the pulse for the housing market’s vigor. A rise in these stocks usually signals an anticipated upswing in housing demand and prices. Following hot inflation data Wednesday, homebuilder stocks took a big hit. Lumber, like housing stocks, has taken a big tumble as investors fear further rate hikes.

Long-term mortgage rates near 7% mark

Long-term mortgage rates neared the 7% mark, according to the Freddie Mac Primary Mortgage Survey. 30-year fixed-rate mortgages averaged 6.88% as of April 11. Mortgage applications rose on the back of strong refinancing activities, Freddie Mac says.

Risk-On Sentiment Persists, Defying Gravity - And Logic?

Home Market Outlook Today's Market Risk-On Sentiment Persists, Defying Gravity - And Logic? James Picerno says bullish enthusiasm remains strong, based on prices through Apr. 8, 2024. One area that’s conspicuously bearish, still, is the US Treasury market.

New Home Prices Fall, Still Unaffordable For Most American Households

In February 2024, the median new home price sold in the United States fell to $400,500. Even at the lowest price recorded since June 2021, it still remains out of reach for the typical American household. The mortgage payment for a typical new home sold has consistently exceeded the 28% basic affordability threshold.

Is SPDR S&P Homebuilders ETF (XHB) a Strong ETF Right Now?

Weekly Report: what happened at XHB last week (0401-0405)?

Mortgage rates show little movement, rates not expected to decrease meaningfully

Mortgage rates show little movement, rates not expected to decrease meaningfully in the near-term. 30-year fixed-rate mortgages averaged 6.82% as of April 4, Freddie Mac says. 15-year mortgage rates average 6.06%, down from last week and a year ago.

REITs finish March trading at 15% discount to NAV per share estimates

Office REITs finish March trading at 15% discount to NAV per share estimates. Industrial Logistics Properties Trust (ILPT) continued to trade at the largest discount to its consensus NAV estimate of $13.26. The median discount of 15% is unchanged from the month prior.

Median Household Income In February 2024

According to Motio Research, median household income dipped in February 2024. The firm's estimate of the typical U.S. Household's median income for February 2024 is $77,265. Motio's index for the typical American household falls below the pre-pandemic level of 112.9 recorded in February 2020.

Weekly Report: what happened at XHB last week (0325-0329)?

U.S. Multifamily Housing: Distress Can Create Opportunity

The U.S. Multifamily housing sector faces challenges from both overdevelopment and capital market pressures. Solid macroeconomic fundamentals and sustained demand offer potential opportunities in the medium term for well-capitalized investors to exploit distress in the market. The sector accounts for less than 10% of the total commercial real estate distress.

Mortgage rates marginally down

Mortgage rates were marginally down this week. 30-year fixed-rate mortgages averaged 6.79% as of March 28. Freddie Mac says encouraging data on existing home sales reflects improving inventory. Rates remain elevated near seven percent, but are marginally down from last week.

U.S. New Home Market Shrinks Again In February 2024

The size of the U.S. New home market as measured by its market capitalization shrank for the fifth month in a row. The average price of a new home sold in February 2024 is expected to be $485,000. Sales of new homes unexpectedly fell in February. The median new house price is the lowest in more than two years.

SPDR S&P Homebuilders ETF Experiences Big Outflow

Weekly Report: what happened at XHB last week (0318-0322)?

Amid Weak Demand For Existing Homes, Active Listings And Price Reductions Jump, Listing Prices Weaken

Seasonally adjusted annual rate of sales of existing single-family houses, condos, and co-ops rose 9.5% in February from January. Home sales remain at very low levels as the entire housing market has shrunk by 20% to 25%. New listings jumped by 11% year-over-year in February as active listings highest since before the pandemic. Listing prices are weakening as homeowners with 3% mortgages are neither buying nor selling.