By Calculated Risk on 7/10/2024 2:11:00 PM From Dodge Data Analytics: Dodge Momentum Index rose 10% in JuneThe Dodge Momentum Index (DMI) released by the Dodge Construction Network rose 10.4% in June to 198.6 (2000 = 100) from a revised 179.9 in May. Commercial plans increased 14.5% and institutional plans increased 0.2% for the month. “Data centers continued to dominate planned projects in June, marking another strong month for commercial planning,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “Planning momentum, while not as strong as data centers, is seen across most segments, signaling confidence in market…
Author: Private Lending Agent
By Calculated Risk on 7/10/2024 2:11:00 PM From Dodge Data Analytics: Dodge Momentum Index rose 10% in JuneThe Dodge Momentum Index (DMI) released by the Dodge Construction Network rose 10.4% in June to 198.6 (2000 = 100) from a revised 179.9 in May. Commercial plans increased 14.5% and institutional plans increased 0.2% for the month. “Data centers continued to dominate planned projects in June, marking another strong month for commercial planning,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “Planning momentum, while not as strong as data centers, is seen across most segments, signaling confidence in market…
Signs of a “late spring housing market slowdown” emerged in June as U.S. home prices fell for the first time this year and fixed interest rates for purchase mortgages fell 8% from a year ago. That's a key takeaway from Optimal Blue's June 2024 Market Advantage Report, released Wednesday. The report, which covers the 20 largest U.S. metropolitan areas, found that the average home purchase price in June was $478,800, down about $1,500 compared to May. Given the fewer productive days in June, lockdown loan volume (including purchases and refinances) increased 2% month-over-month. “Despite improving interest rates, purchasing activity was…
According to a report from Optimal Blue Market Advantage, mortgage purchase activity slowed in June, while lower interest rates led to a 39% month-on-month increase in loan volume for rate and term refinances. Consumers with mortgage interest rates that were higher than current market rates were quick to take advantage of the situation.”Many homeowners with higher interest rates, especially those who paid off their mortgage within the past 12 to 18 months, jumped at the opportunity to refinance in order to get even a small reduction in their monthly payment,” Brennan O'Connell, director of data solutions at Optimal Blue, said…
For homebuyers who have been waiting for a significant drop in mortgage interest rates, this news may come as a bit of a disappointment. Experts predict that interest rates are likely to remain stable at or above 6% for the remainder of 2024. This means that the ultra-low interest rates that have been hovering around 3% for the past few years are unlikely to return in the near future. The main factors behind this trend are the Federal Reserve's interest rate hikes and the overall economic situation. Mortgage interest rates forecast for the end of 2024 Current Trends and Forecasts…
Federal Reserve Chairman Jerome Powell said on Wednesday that the era of ultra-low interest rates that lasted from the 2008 financial crisis through the pandemic is likely over, and that the neutral interest rate for achieving 2% annual inflation has probably risen. Testifying before the House Financial Services Committee, Powell said the central bank's interest rate policy is unlikely to return to the near-zero level it was at from 2009 to 2017, despite significant progress in fighting inflation. “We're probably not going to go back to the days between the global financial crisis and the pandemic when interest rates were…
In public debate, the fact that interest rates are not just a policy tool of the Federal Reserve, but also a market-determined price of capital, is often overlooked. Here, we explore historical trends in various sources of capital (not all of them) and briefly list the various current large demands for capital. A low supply relative to demand creates pressures that usually lead to higher interest rates. US Savings Rate Total net savings in the United States, as a percentage of U.S. Gross Domestic Product, has been declining since the mid-1960s (see Figure 1). From 1947 to 1956, the first…
With the 30-year average mortgage rate approaching 7% last week, mortgage applications fell for the second consecutive week, down 0.2% from a 2.6% decline the previous week, according to the Mortgage Bankers Association's (MBA) latest Weekly Applications Survey for the week ending July 5, 2024. Last week's results included an adjustment for the Fourth of July holiday.This week's numbers: The Market Composite Index, a measure of mortgage application volume, was down 0.2% week-over-week on a seasonally adjusted basis. On an unadjusted basis, the index was down 20% week-over-week. The Refinance Index was down 2% week-over-week and up 28% from the…
WASHINGTON, DC – November 2: Federal Reserve Chairman Jerome Powell speaks… [+] Opening remarks. (Photo by Chip Somodevilla/Getty Images)Getty Images There are many strands of the nation’s economy. Conventional wisdom says the economy is made up of the haves and the have-nots. But this binary view of the economy misses the more important and nuanced story of the hardworking Americans who want to be the innovators and small business owners of today and tomorrow. They don’t want or need a handout, but they do need policies and economic frameworks that make it much easier to start new businesses, large and…
MarketWatch: Rising home prices are outside the central bank's purview, but the bank said it would take action if the upward trend creates a bubble or threatens financial markets. Crystal Shu / Reporter Inflationary pressures in Taiwan are easing but the central bank does not intend to cut interest rates anytime soon, Bank of Taiwan Governor Yang Chin-long said yesterday.Rather, the central bank will take further measures to curb the property market if necessary, Yang told a meeting of parliament's finance committee after the national consumer price index (CPI) rose 2.42 percent year-on-year last month, above the central bank's 2…