Housing Snapshot - November 22, 2004 - 11/22/2004 - Mortgage Loan Refinance Debt Equity

Housing Snapshot - November 22, 2004

Mortgage interest rates remained virtually unchanged last week, with long-term rates down just a tad and adjustable rate financing up slightly. Freddie Mac Chief Economist Frank Nothaft said that housing starts are currently exceeding expectations because long-term mortgage interest rates remain below the peak levels reached in May, and he sees no dramatic rise in those rates on the horizon as further job creation helps buoy housing demand. The Conference Board's Index of Leading Economic Indicators released last week was down for the fifth straight month in October, suggesting that growth may be losing some steam but is in no danger of ending. Inflation continued to drift higher in October, with a 0.6% increase in the consumer price index, led largely by energy and food prices. And Federal Reserve Chairman Alan Greenspan gave a slight chill to the financial markets through his remarks at a conference in Germany that he is increasingly concerned about the magnitude of the U.S. trade deficit. On the lumber front, prices headed up last week, although not decisively. Framing lumber prices climbed to $357 per 1,000 board feet, up from $348 the prior week, according to Random Lengths. That group's structural panel composite price, including oriented strand board, was also up, rising from $321 to $334 for 1,000 square feet, compared to $519 a year earlier.