State & National Updates Archives for 2017-06
Weekly News Digest of NAHB
Builders Take to the Halls of Congress
More than 800 members speak out as one voice on housing.
Rep. Westerman's Forestry Bill a 'Win-Win-Win'
NAHB testifies on need to increase lumber production from federal lands.
Flawed Flood Insurance Bill Clears House Panel
NAHB opposes "new construction" provision.
NAHB Officers Hold Productive Talks with HUD Secretary
Agenda focuses on regulatory reform and housing affordability.
Builder Sentiment: Still Solid
Confidence levels have remained consistently sound in 2017.
Multifamily Decline Brings Overall Housing Starts Down 5.5% in May
On a year-to-date basis, single-family starts are still up 7.2%.
How to Comply with the 2018 Building Codes
Free webinar replay provides the answers.
New Guidance Helps Insulate You from Poor Walls and Attics
Tech Note offers best practices for optimal installation.
Federal Reserve Policy Moves
Federal Reserve Policy Moves
A tightening labor market and a desire to normalize monetary policy led the Federal Reserve's monetary policy committee to tighten financial conditions.
First, the Federal Open Market Committee announced the second rate hike of 2017, increasing the target rate to a range of 1%-1.25%. NAHB expects one additional increase in 2017.
Second, the committee announced plans to reduce its balance sheet, which grew after the Great Recession as part of an accommodative policy known as quantitative easing. The balance sheet, which includes $1.8 trillion in agency debt and mortgage-backed securities, would be reduced in a "gradual and predictable" manner, creating only a slight increase in mortgage rates. The reductions in mortgage-backed securities would start at $4 billion and rise to $20 billion per month over a 12-month period and not result in a complete run-off of holdings. This process would likely begin at the end of 2017.
The Fed's actions are motivated by admittedly conflicting data. Measures of inflation remain below the Fed's 2% objective, but tight labor market conditions risk accelerating prices. For example, the unemployment rate was 4.3% in May and job openings persist at elevated levels, especially within the construction industry. The Fed's moves represent a belief that economic conditions continue to be solid and growth will continue.
NAHB Chief Economist Robert Dietz
Lending and Spending
Fed Raises Rates, Announces Balance Sheet Reduction Plan
The announced policy is intended to be "gradual and predictable."
Softwood Lumber and OSB Prices Keep Climbing
May's increase pushed the softwood lumber price index to its highest level in nearly 13 years.
Private Residential Construction Spending Slows in April
Declines largely stem from both the multifamily and home improvement sectors.
Home Equity Grows to $23.5 Trillion
More home owners are refinancing to cash out.
Though they remain above the low of 3.54% set in October 2016.
Consumer Credit Expands at a Slower Pace
Total household debt has returned to its 2008 peak level.
April declines were reported in all regions of the U.S. except one.
Employment Situation is Just a Little Disappointing
May's report is unlikely to alter the Fed's overall positive economic impressions.
Consumer Confidence Slightly Decreased in May
Optimism waned for the near-term outlook.
Regional Patterns Emerge for Age of Construction Workers
Median ages are highest throughout the Northeast, lowest in the Midwest.
Who are NAHB's Associate Members?
Census illustrates the categories of those who are indirectly involved in home building.
Construction Job Openings Jump in April
Recent increases in quits reflect growing competition for workers.
Home Price Appreciation Slowed in March
Since November 2016, prices have been decelerating.