Housing starts in May had its strongest month in almost 11 years, rising 5.0% to a seasonally adjusted annual rate of 1.350 million units. Single-family starts were up 3.9% to a pace of 936,000 units.
1. Year-to-date, housing starts are up 11.0% over the first five months of 2017. Single-family starts are 9.8% higher, and multifamily starts are 13.7% above starts from 2017..
2. New homes were sold in May at the second-fastest sales rate since late 2007. The seasonally adjusted annual rate of 689,000 homes was topped only by the 712,000-unit sales pace in November 2017. Through the first five months of 2018, new home sales are running 8.9% ahead of last year’s first five months.
3. The median price of new homes sold in May slipped 3.3% from its year-ago level, dropping from $323,600 to $313,000.
4. Existing homes were sold at a seasonally adjusted annual rate of 5.43 million units in May, a 0.4% decline from April. Year-to-date, sales are 1.4% lower than they were through the first five months of 2017.
5. The months’ supply figure rose for the third consecutive month in May to stand at 4.1 months. That means that at May’s sales rate, it would take 4.1 months to sell all of the inventory available during May. In February, this popular inventory measure stood at 3.4 months.
6. The median price of existing homes sold in May was $264,800, a 4.9% increase over the median price of homes sold in May 2017.
7. Industrial production edged down 0.1% in May, following April’s 0.9% gain. Over the past year, production is up 3.5%, almost four times faster than the 0.9% average annual gain from 2013-17.
8. The economy expanded at a 2.0% rate during the first quarter, down from the 2.2% estimate released in late May. That generated a 2.8% gain over the past year. Over the past five years, GDP has grown at a 2.3% average annual rate.
8. The average rate on 30-year fixed-rate mortgages in Freddie Mac’s survey was 4.55% during the week ending June 28, down 2 basis points from the previous week. The rate averaged 4.57% in June and 4.59% in May. All rates quoted have fees and points averaging 0.4% to 0.5% of the loan amount.
Stephanie M Stout
Home Mortgage Consultant
Wells Fargo Home Mortgage
601 Jackson Street
LaPorte, IN 46350