July TMLS data is strong; mortgage rates continue to climb
Posted August 15, 2012
Triangle housing fundamentals continue to strengthen according to the most recent data out from the Triangle Multiple Listing Service. July data showed us that home sales continue to improve, increasing 23% from this time last year. Pending sales are also trending much higher, jumping 31% in July for year over year data. Two key metrics for continued Triangle housing success are that Home Inventories in the Triangle dropped by 26% over the past year, and the all-important Days on the Market indicator has decreased now for the fourth consecutive month, indicating momentum behind a recovering Triangle housing market.
According to the National Federation of Independent Business (NFIB), its optimism index fell for the third straight month, indicating increasing concerns from its members about the economic stability of the economy. This drop reflects a lower level of confidence, which may end up causing further pullback in consumer spending.
The National Association of Home Builders has seen its sentiment index climb for the fourth consecutive month. The reading of 37 now represents its highest level in five years. This is great news for builders and potential homeowners who are looking to purchase new construction.
Mortgage Rates have really taken it on the chin over the past few trading sessions due to increased optimism regarding Europe and better than expected domestic economic data. We’re at a crossroads right now regarding our US economic data. The positive news has been well received, but given that inflationary concerns have been kept well in check, and the fact that there are still plenty of headwinds facing our economic recovery, many pundits are still expecting the Fed to implement some type of easing in September. The silver lining in slightly higher rates is that it may prompt some fence-sitters to act sooner rather than later, thereby increasing the pool of eligible housing transactions for the Triangle in the short term.