Homebuilder sentiment report has a few surprises
The National Association of Home Builders / Wells Fargo Housing Market Index released their monthly home builder sentiment report yesterday.
Homebuilders reported cutting prices on new homes last month. The average price cut reported was about 6% with 36% of builders reporting price cuts.
Robert Dietz, the NAHB’s chief economist, was quoted in the report as saying, “While builder sentiment was down again in November, recent macroeconomic data point to improving conditions for home construction in the coming months.”
Dietz continued in the report, “Given the lack of existing home inventory, somewhat lower mortgage rates will price in housing demand and likely set the stage for improved builder views of market conditions in December.”
The NAHB also forecasted a 5% increase for single-family home starts in 2024.
How are mortgage rates doing after inflation data?
The national average for a 30-year, fixed-rate mortgage fell 0.09% to 7.36%* on Thursday. Recent jobless claims data and a few other second-tier reports were enough to spur the bond market lower, and the mortgage market followed suit.
The next major data point to give the market direction will come today with multiple speeches from Federal Reserve Presidents, and housing starts and building permit data for October.
Which renovation can add up to 20% in value?
Dave and Jenny Marrs of HGTV’s “Fixer to Fabulous, revealed their top value-add home renovations in a recent discussion with Realtor.com.
They revealed the one renovation that can add as much as 20% in value to an existing home. What’s the upgrade, you ask? Adding an additional bathroom. Adding a separate bathroom for guests is a serious value add if you have the space to work with. They recently pulled off this upgrade on a recent episode. While it was a bit tricky, their team was able to make the space, and plumbing, work for the home they were upgrading.
Do you have a renovation that you want to start this winter? Let the team at Guaranteed Rate help you finance it with a renovation loan. Apply today to get started on upgrading your home!
* National average rates accurate as of 11/16/23 from MortgageNewsDaily.com and are not advertised rates from Guaranteed Rate.
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