Last month, sales of existing homes fell 0.6% as the national home resale price rose 11.8% from last year. The inventory of existing homes for sale increased by 1.6% in March and economists are expecting more homes to be added to the market in time for the summer buying season.
Also helping with inventory is U.S. home builders which recorded their fastest pace in home building in almost five years last month. The bulk of the surge in building activity however was due to a 31.1% increase in apartment construction. Even as single family construction fell last month, builders remain confident about the housing market.
Last week the Federal Reserve released their Beige Book report which showed the economy growing at a 3% annual rate in the first quarter. The housing sector has helped produce jobs as well as boosted factory orders for building materials. The housing markets future is looking bright with the current low mortgage rates fueling purchases and refinances. The Fed has also noted that they will continue to keep interest rates low at least until the unemployment rate falls to 6.5%.
This week on the economic calendar there is little data other than another housing report tomorrow. Other market moving data this week may come from Europe as Italy’s President has been re-elected. The state of the European economy often times can affect what happens in the U.S. market.
Senior Loan Officer
NMLS #191784 - 1st Advantage Mortgage NMLS #2551
1st Advantage Mortgage, a Draper and Kramer company