U.S. housing markets are gaining as demand for homes exceeds available supplies in many areas. The National Association of Home Builders/ Wells Fargo Housing Market Index (HMI) for June increased by eight points over May’s reading to achieve a positive reading of 52. This last happened in August-September of 2002, when HMI monthly readings also jumped by eight points.
Foreclosure actions increased by 2.0 percent in May from April’s 75 month low point for foreclosure activity according to RealtyTrac’s U.S. Foreclosure Market Report released June 11.
However, the good news is that May 2013 foreclosure filings were still 28 percent below May 2012 filings.
Last week’s news was relatively quiet with no data significant to real estate and mortgage lending released until Wednesday, when the federal government announced a $138 billion budget deficit for May.
Last week’s economic reports provided a mixed bag of results. Investors continue to watch the Fed’s mortgage backed security purchasing trends in order to determine forward mortgage pricing.
This weekâs financial news was relatively limited due to the Memorial Day holiday and no economic reports being released on Wednesday. The biggest news in terms of housing and mortgages was the S&P/Case-Shiller Housing Market Indices (HMI) released on Tuesday.
The most recent S&P/Case-Shiller Indeces report showed all three composites posting double-digit increases over the last four quarters. The national composite, which is the broadest based index, showed an increase of 10.2% annually.
The National Association of REALTORS reported that sales of existing homes in April reached 4.97 million on a seasonally-adjusted annual basis. This is the highest report since November 2009.
Home builders are gaining confidence in current and future market conditions for new homes, but continue to see below-average foot traffic in new homes.
RealtyTrac recently reported that national foreclosure filings are down while foreclosure filings are seeing marked increases in some states.
The Bureau of Labor Statistics released its monthly Non-farm Payrolls and National Unemployment Rate for April last Friday. These two reports are collectively called the Jobs Report.
165,000 jobs were added in April, while the unemployment rate dropped from 7.60 percent in March to 7.50 percent in April.