Shelter Six:  Home Sales Flat but Inventory up Slightly

1. After four straight months of declines, Existing Home Sales were flat in August.

2. Inventory was a little higher than a year ago though, marking the first year-over-year increase in about three years.

3. Inventory remained at a 4.3-month supply from July, which is still low considering a 6-month supply is considered healthy.

4. In August, Housing Starts rose a strong 9% from July, but most of the increase was due to multi-family units and Single-Family starts were up just 2% from July.

5. Builders point to rising land, material, and labor costs as obstacles to a faster pace of new construction.

6. Overall, the economy remains strong with record highs in the stock market, a solid labor market, faster wage increases, and strong consumer confidence.

Rate Update

A rally in the stock market drew assets away from bonds last week pushing yields higher and mortgage rates to the highest point in seven years.

This Week

The next Federal Reserve meeting will take place on Wednesday.  Investors expect a .25% increase in short-term rates.  New Home Sales will be out on Wednesday, Durable Orders on Thursday, and the Core PCE Price Index on Friday.

September 24, 2018 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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