Looking at our biz, yesterday we learned that New Home Sales in March jumped 11.1% to 300k from an upwardly revised 270k, previously reported at 250k, but are down 22% from a year ago. The number was greater than expected, but remains weak and just above the historic low of 270k and well below a "normal" level of in the 700k area. Better weather conditions reportedly was a factor in the uptick with possibly some support related to looming increases in FHA financing costs that took effect on April 18. The median home price was $213.8k, down 4.9% from a year ago, and we're looking at about a 7 month supply, down from 8 months reported last month. There were 183,000 new houses on the market at the end of March, the fewest since August 1967, indicating builders are reducing construction. So housing continues to be slow, and refinancing is right along with it given the tight underwriting, increased financing costs, poor home valuations, and a weak jobs market. Folks are waiting for a good chunk of the foreclosed properties to be absorbed, home values to start to recover, and credit standards to ease.
