Homes and Money

Low Inventory Impacts Housing Hopes

Low inventory, shortages of land and labor, and high costs of lumber hurt home sales and construction in June.

Sales of existing homes fell 0.6 percent from May to an annual rate of 5.38 million units, the National Association of REALTORS® reported. Inventory of homes for sale on the market was at a 4.3-month supply, well below the 6-month supply seen as normal. Lawrence Yun, NAR chief economist, said, "The root cause is without a doubt the severe housing shortage."

New Home Sales also declined in June, hitting their lowest level since October 2017. Sales fell 5.3 percent from May to an annual rate of 631,000, the Commerce Department reported. Inventory of new homes for sale fared better than inventory of existing homes in June, with a 5.7-month supply of new homes available.

June Housing Starts, which measure when excavation begins on a home, also reached their lowest level since September 2017. Starts fell 12.3 percent from May to an annual rate of 1.173 million units, and they declined in all four major regions of the country. Starts were down 4.2 percent from June of last year.

Building Permits, a sign of future construction, fell 2.2 percent in June from May to an annual rate of 1.273 million. Building Permits were down 3 percent from a year ago.

Strong Second Quarter GDP
Economic growth surged in the second quarter of 2018 due in part to a big rise in consumer spending. The Bureau of Economic Analysis reported that Gross Domestic Product (GDP) rose 4.1 percent from the 2.2 percent recorded in the first quarter. The report also showed that consumer spending jumped 4 percent in the second quarter from the dismal 0.5 percent in the first quarter. GDP is considered the broadest measure of economic activity.

At this time, home loan rates remain near historic lows.

 

 

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Standard Mortgage was incorporated in 1925 and acquired by the Bright Family in 1964. Since then, Standard Mortgage has grown from a single office in New Orleans to a company with multiple mortgage offices located throughout the South. At Standard Mortgage, we originate and service mortgage loans secured by single family properties. We have established relationships with credible investors including Fannie Mae, Freddie Mac, FHA, and several other capital sources. ...

 

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Standard Mortgage - NMLS: 44912
701 Poydras Street
Suite 300 Plaza
New Orleans, Louisiana 70139
Phone: (800) 826-5801
Email: info@stanmor.com

 
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Standard Mortgage Corporation (NMLS #44912), an Equal Housing Lender  is chartered, licensed or registered as a residential mortgage company in Louisiana #RML 496-0; Alabama #4929; Arkansas #10626, Colorado, Florida #MLD502, Georgia#14750, Mississippi #44912, North Carolina #L-124936, Oklahoma #ML010154, South Carolina #MLS-44912, Tennessee #108900 and Texas. This email is neither an offer nor commitment to extend credit and is for informational purposes only. Any offer is subject to change without notice. Any application for credit must be approved based on current underwriting policies. For more information about Standard Mortgage visit our website at: www.stanmor.com