Shelter Six:  Low Housing Inventory Being Aided by Strong New Construction

Nationally, March Housing Starts jumped a stronger-than-expected 19% from February to the fastest pace since 2006.

Building Permits increased nearly 3% to 1.77M units, reflecting a quick snapback from the weather-induced downturn in February.

With such strong housing metrics, it is not surprising that Homebuilder Confidence continues to hover around all-time highs.

Consumers, armed with fresh stimulus, robust savings, and pent-up demand were out in full force in March as Retail Sales figures jumped nearly 10% following a decline of 2.7% in February.

March’s Consumer Price Index (CPI) was 2.6% higher than a year ago, up from 1.7% last month, and the largest annual rate of increase since August 2018.

Surprisingly, rates fell last week because it is believed that the stimulus checks were the catalyst for such strong Retail Sales figures, and that the high inflation is temporary and will settle back down in a few months.

Rate Update

Rates have spent most of April gradually dropping lower. Mortgage News Daily’s Conforming Purchase 30-Year Fixed-Rate fell from 3.29% to 3.18% last week.

This Week

It will be a light week for economic data with Existing Home Sales being released on Thursday and New Home Sales on Friday.

April 19, 2021 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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