Posted on 07/16/2013 8:51:18 AM PDT by whitedog57
The National Association of Homebuidlers (NAHB) released their homebuilder confidence index this morning and it rose to 57, far above the expectation of 51. A reading above 50 indicates optimism (expansion).
nahbconfid
When we compare the NAHB optimism index to home prices, we can see one of the causes of optimism.
loanhpihomebconfif
Is the source of NAHB confidence and/or house price growth a surge in mortgage lending (as in the last decade) or is it a continuation of cash buyers?
According according to today’s Market Pulse report from CoreLogic, cash is still king.
clcash
And cash prices for housing have surged.
clsurge
And New York (not surprisingly) is where cash is king in the housing market.
clcascities
On the mortgage side, mortgage purchase applications have been sagging with mortgage rate increases since May 1st.
mbapurchmb30mayday
The MBA will release their mortgage application indices tomorrow, so we shall see. Bear in mind that since July 5th, the 10 year Treasury have fallen. And the Bankrate 30 year mortgage average has tracked the 10 year Treasury yield.
ust10april\
Stay tuned!
Cash_is_king
Most americans are ot buying houses.
With inventory down and investors with cash in the market, I would think that a disprortionate of single family home buyers are investors with cash. Disproportionate compared to past years.
I’m see this through soCal.
A broker.
Not buying
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