Triangle Business Today

Triangle, national housing fundamentals improve

Posted May 10, 2012

Triangle New Home Sales and Starts both increased nicely in the first quarter according to a new report out by MetroStudy. New Home Sales were up 11.7% in year over year data, and New Home Starts increased 10.7% in year over year data. This is great anecdotal evidence to embrace as we head into summer here in the Triangle.

For the first time since the GSE’s were put into conservatorship under FHFA, Fannie Mae has not had to take any additional funds following a fiscal quarter. In fact, Fannie posted a first quarter profit of $2.7 Billion which was the largest profit the entity has seen since 2007. Freddie Mac also posted a profit for the first quarter of $577 Million, but drew an additional $19 Million in Taxpayer Aid.

The Producer Price Index and Consumer Sentiment reports are both out tomorrow. Unless we see signs of core inflation increasing, we’re not likely to witness much movement in the bond market tomorrow and mortgage rates should continue their relatively flat existence.

Given that no clear resolution or long term fix is imminent for Europe, we’re likely to continue the flat line on mortgage rates for the foreseeable future. Welcomed news to the ears of Triangle Housing!


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About this Blog:

Jeremy Salemson, CEO of Corporate Investors Mortgage Group, blogs about economic trends and data and their impact on Triangle business. Each week, he interviews a Triangle-area business leader for a personal look at the local economy.