Housing Snapshot - November 15, 2004 - 11/15/2004 - Mortgage Loan Refinance Debt Equity

Housing Snapshot - November 15, 2004

Mortgage interest rates nudged up slightly last week following the fourth Fed increase in the federal funds rate this year. But rates continue to be extremely affordable, which bodes well for new home sales and single-family housing construction. The general economy continued to pick up steam as retail sales grew by 0.2% for the month, according to the Commerce Department. Though retailers posted higher-than-expected sales, most of the sales favored high-end stores over discounters, suggesting that lower-income consumers are still feeling the pinch of energy prices. Jobs increased by 337,000, the best showing since March. About a fifth of those new jobs were in construction, and many of them were a result of the hurricanes that lashed Florida. Overall, consumer confidence in early November rose to 95.5, up from 91.7 in October. There was good news on the lumber front as well. Framing prices fell $7 for the week to $348 from $355 per 1,000 board feet, according to Random Lengths. A year earlier, the price was $333. Random Lengths' structural panel composite price, which includes oriented strand board, dropped from $322 per 1,000 square feet to $321, compared to $544 a year earlier.