1/17: MetroIntelligence Economic Update by P. DUFFY

Builder confidence slips one point to 75 in January, but still at high levels

Builder confidence in the market for newly-built single-family homes edged one point lower to 75 in January. The HMI index charting traffic of prospective buyers increased one point to 58, the highest level since December 2017. The gauge measuring current sales conditions fell three points to 81 and the component measuring sales expectations in the next six months held steady at 79.



Applications surge over 30 percent, rates drop to lowest level since last September

The Market Composite Index increased 30.2 percent on a seasonally adjusted basis from one week earlier, with purchase loans up 16 percent (up 51 percent year-on-year) and refinance activity rising 43 percent (up 109 percent year-on-year).  The average contract interest rate for 30-year fixed-rate mortgages decreased to the lowest level since September 2019, 3.87 percent.