Construction of New U.S. Homes Declines on Plunge in South – Bloomberg 07-17-14

Salient to Investors:

  • Jay Morelock at FTN Financial said the ‘big recovery’ has turned out not to be, and expects a stabilization but not a crash or acceleration.
  • Brad Hunter at Metrostudy said starts in the South may have been hurt by a shortage of buildable lots as development was held up by the unusually harsh winter.
  • Mark Zandi at Moody’s Analytics said the magnitude of the slump in the South is too bizarre to put any weight on it.
  • Freddie Mac said the average 30-yr fixed mortgage rate is 4.13 percent versus 4.53 percent at the start of 2014. The median price of a new home sold in May increased 6.9 percent from a year prior.
  • Aneta Markowska at Societe Generale said the manufacturing data looks very good and better fits their economic outlook, and the reason businesses are getting more optimistic is because they know that households are getting healthier at the margin.

Read the full article at http://www.bloomberg.com/news/2014-07-17/housing-starts-in-u-s-unexpectedly-fall-on-plunge-in-south.html

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