Homebuilder confidence in June reached its highest since January 2016, Their outlook on current sales conditions, sales expectations in the next six months, and buyer traffic were all positive. The reason might be groundbreaking on single-family homes. The Commerce Department reported May Housing Starts on single-family homes, the largest segment of the market, rose 0.3 percent. Building Permits, a sign of future construction, also rose 0.7 percent in May. Home prices also continue to heat up. Data analytics firm CoreLogic reported that home prices rose 6.2 percent from April 2015 to April 2016
The economy is important for homebuyers and homeowners. When the economy is doing well, investment dollars usually move into the more risky Stock markets, so investors can take advantage of gains. When the economy is not doing well, investment dollars typically are moved to the less risky Bond markets. Mortgage Backed Securities are a type of Bond tied to home loan rates. When Bond prices improve, home loan rates can as well. The reverse is also true.