Mortgage Rates Hold Steady, Construction BOOMS
Nerd Wallet reported that mortgage rates are at 2016 lows, which has caused a boom in construction growth. The increase in housing construction growth is good for homebuyers and the housing market.
Freddie Mac released their weekly survey of lenders and showed that the average 30-year fixed rate mortgage is 3.58%. While 15-year fixed rate is averaging 2.81%.
"The 10-year Treasury yield saw minimal movement over the past week, despite encouraging news from April's consumer spending and CPI data. Accordingly, the 30-year mortgage rate moved up just 1 basis point from its 2016 low to 3.56%. Although, there was minimal change in rates this week, the hawkish tone of Wednesday's Fed minutes release had an immediate impact on Treasury yields, and could possibly shake up next week's survey results," said Sean Becketti, chief economist for Freddie Mac.
At the same time, housing construction has picked up. The total U.S. housing starts rose to 6.6% in April. That is 1.17 million housing starts ABOVE the March estimate (seasonally adjusted). In addition, single-family permits pulled by homebuilders grew to 1.5% to 736,000. Multi-family permits rose to 380,000 (up 8%).
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