Every month, the National Association of Home Builders (NAHB) publishes the HMI, a report that studies the confidence level of the nation’s home builders. Based on a scale of 1 to 100, a score of 50 and higher bodes well for the industry. This signifies that home builders believe sales conditions will be positive. On the other hand, a score of 49 and below could mean that home builders have negative sentiments toward the industry’s future.
The HMI consolidates the findings of three surveys that home builders respond to every month. Members of the NAHB answer questions pertaining to three aspects: current single-family sales volume; projected single-family sales volume; and current foot traffic.
Correctly interpreting the HMI readings is important. If the readings are increasing, then home builders believe that market demand is improving. That is, they believe that more home buyers are in the market. More buyers in the market drives increased home prices and increased mortgage rates. So, an improving market will quickly increase the cost of home ownership for new home buyers.
The situation right now is that home prices in Arizona are well up from their bottoms and are now pretty flat. Likewise, Arizona mortgage rates are up about a point from their low but are still highly affordable. Throughout the state, homeownership remains a possibility for many, as the costs of home construction are kept low.
What does this mean for you? If you are considering the purchase of a new home or home loan refinancing, this may be a good time to do it. Barring some unforeseen economic crisis, home prices and mortgage rates can really only go up from where we are now.
If you have any questions about this or if you have any questions you’d like us to answer on our podcast, you can email your questions to team@azmortgagebrothers.com or give us a call at (602) 535-2171. Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.
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Thanks for listening and reading the Mortgage Brothers Show. Let us know if you have any questions you’d like us to answer on this podcast. You can email your questions to Tom@AZMortgageBrothers.com or Eddie@AZMortgageBrothers.com.
Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.
Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.
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