In the latest report from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, sales of newly constructed homes (new home sales) in June returned to their months-long downward trend after a brief bump up in May. Another sign of a housing market in decline, rising mortgage rates combined with rising home prices have thrown cold water on what had been a very hot housing market over the last year-and-a-half.
Economic Trends
June Housing Starts Hit 9-Month Low; Single-Family Starts Lowest in 2 Years
After a dramatic double-digit drop in May, June housing starts declined again, with overall starts not only dropping below May’s rate to a nine-month low but also coming in well below the rate in June 2021. Single-family starts in June hit their lowest seasonally adjusted annual rate since July 2020.
Learn all the latest data on June housing starts
[Read more…] about June Housing Starts Hit 9-Month Low; Single-Family Starts Lowest in 2 YearsInflation Spiked 9.1% in June Exceeding Forecasts; Risk of Recession Grows
The U.S. Bureau of Labor Statistics announced Wednesday that inflation in June came in at a surprising rate of 9.1%, clearly demonstrating that – in contrast to what many economists had hoped – inflation had not yet peaked in May. This news raises the risk of an approaching economic disruption…a recession.
Read more on this inflation reading
[Read more…] about Inflation Spiked 9.1% in June Exceeding Forecasts; Risk of Recession GrowsHousing Affordability Index Collapses to Lowest Level in 22 Years
The latest data on home affordability from the National Realtors Association, tracked in its Housing Affordability Index, shows that housing is at its least affordable level in 22 years. And that’s not just for first-time buyers, but for home upgraders as well. Not only that, but new economic data suggests that this declining housing affordability will remain an issue for some time yet to come.
See the latest Housing Affordability Index data
[Read more…] about Housing Affordability Index Collapses to Lowest Level in 22 YearsGlobal Manufacturing Inventory Levels Hit a Record $1.8 Trillion
Manufacturers Struggle with Multiple Global Challenges
A broad group of global manufacturers in diverse markets from Ford to Samsung have seen their inventory levels swell as consumer demand weakens in the wake of surging inflation and destabilizing economic conditions, according to a new analysis by the Nikkei. According to their research, global manufacturing inventories have swelled to $1.8 trillion, a record total that is the highest measured manufacturing inventory level in the last ten years.
Learn more about rising manufacturing inventory levels
[Read more…] about Global Manufacturing Inventory Levels Hit a Record $1.8 TrillionConsumer Confidence in June at Lowest Level in 16 Mos
The Conference Board announced on Tuesday that consumer confidence in June, as measured by their Consumer Confidence Index, a key indicator of the state of mind of the U.S. consumer, has dropped to a reading of 98.7. This is the first time that the Index has been under its 100 reference level since a post-2020 pandemic recovery. Generally, a reading under 100 indicates a pessimistic consumer likely to cut back on spending.
This is the lowest reading for consumer confidence since February 2021.
See the latest on a declining consumer confidence index
[Read more…] about Consumer Confidence in June at Lowest Level in 16 MosWhat?! Both New Homes Sales & Pending Home Sales Jump in May
A Fluke? Or is Housing Making a Comeback?
Data released on Friday by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development showed that sales of newly constructed homes actually increased in May. At the same time, the National Association of Realtors released new data on pending home sales which also showed a surprise jump in contracts in May.
What’s going on? Is the housing market mounting a comeback?
What does this surprise increase in new & pending home sales mean?
[Read more…] about What?! Both New Homes Sales & Pending Home Sales Jump in MayHousing Starts in May Slide -14.4%, Lowest Level of Building in 13-Months
A new report by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development notes that residential housing construction starts (housing starts) has taken a pretty severe downturn in May with overall starts sliding fully -14.4%. This is yet another indicator of the slowing growth in the housing market, as rising mortgage rates, overall inflation, and high housing prices begin to cool the once red-hot housing market.
See all the details from the latest report on housing starts…
[Read more…] about Housing Starts in May Slide -14.4%, Lowest Level of Building in 13-MonthsEconomic Anxiety Builds with Unexpected Jump in Inflation in May; Stocks Turn Bearish
>Consumer Sentiment Hits Record Low in June
Things are changing in the economy faster now, causing a dramatic uptick in economic anxiety. The fuse was lit last Friday when the latest government data showed that inflation increased to 8.6% in May compared to last year. The reading on inflation had been widely expected by most economists to drop a point or two from the 8.3% rate of inflation reported in April. The news sent Wall Street into a tailspin as traders interpreted the increase in inflation as a heightened risk of recession.
See more on changing economic trends, like inflation
[Read more…] about Economic Anxiety Builds with Unexpected Jump in Inflation in May; Stocks Turn BearishMortgage Demand Drops to Its Lowest Level in 22-Years
Almost weekly now, we are regularly seeing new data showing the dramatic slowdown of the housing market. A case in point is the latest data from the Mortgage Bankers Association which tracks the weekly demand for mortgages for both home purchases and for refinancing. The Association reported that its index hit its lowest level in demand for mortgages in 22-years.