Triangle housing looking up
Posted January 3, 2012
The bulls are running out of the gate this morning – the Dow is up over two hundred fifty points in early trading as the markets embrace confidence for the first trading day of 2012.
Construction spending came in higher than expected – up 1.2 percent for November vs. being down (revised) 0.2 percent in October.
The ISM Index – which is a measure of manufacturing sentiment – came in higher as well with a reading of 53.9 in December vs. 52.7 in November.
Treasury Yields are up from last Friday. We closed the year at a yield of 1.88 for the 10-Year Treasury, and early trading puts us at 1.95 this morning, indicating slight upward pressure on mortgage rates.
I am bullish on Triangle housing in 2012 for three reasons:
- continued economic improvement in the US and the Triangle – which will lead to greater confidence and resources for consumers in housing.
- very attractive mortgage rates for the foreseeable future and
- a well-balanced Triangle housing market in terms of supply/demand which will continue to improve the purchase numbers and keep home values attractive.