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Bidenomics? US Housing Starts UP 6% YoY, But Building Permits Stagnate In July As Mortgage Rates Topped 7% (MBA Purchase Demand Down -26% YoY, Down -2% WoW)
Confounded Interest ^ | 08/16/2023 | Anthony B. Sanders

Posted on 08/16/2023 6:36:03 AM PDT by Kaiser8408a

“Ice Cream Joe” Biden is at Lake Tahoe for a week, probably to avoid being asked questions about his tin-ear respoonse to the tragic Maui fires that have killed 99 people so far. Instead, Joe is inappropriate chuckling (he doesn’t care!) and taking photo ops of him eating ice cream. The Biden administration angered a lot of people when it was announced that households that have been affected by the fires would only be getting a one time emergency aid payment of $700 while he gives billions for Ukraine.

After last month’s surprisingly large declines, Housing Starts and Building Permits were expected to rebound modestly in July data released today (still losing altitude from May’s major surge).

At least housing starts were up 6% year-over-year (YoY).

This won’t end well.

Speaking of not ending well, mortgage applications decreased 0.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 11, 2023.

The Market Composite Index, a measure of mortgage loan application volume, decreased 0.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2 percent compared with the previous week. The Refinance Index decreased 2 percent from the previous week and was 35 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 0 percent from one week earlier. The unadjusted Purchase Index decreased 2 percent compared with the previous week and was 26 percent lower than the same week one year ago.

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Food; Government; Politics
KEYWORDS: biden; fed; housing; rates
Assshole Joe is more like it. Billions for Ukraine and virtually nothing for Maui fire victims.
1 posted on 08/16/2023 6:36:03 AM PDT by Kaiser8408a
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To: Kaiser8408a

Who is still building?
Who is still buying?
Who is still lending?


2 posted on 08/16/2023 6:37:41 AM PDT by EEGator
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To: Kaiser8408a

Why does the Fed have to solve every crisis? Natural disasters should be handled locally.


3 posted on 08/16/2023 6:39:34 AM PDT by bray (You can tell who the Commies fear.)
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To: EEGator

My customers(munber yards and truss plants) in OKC, Coeur d’Alene, Boise are all very busy.

My customers in Minny, Phoenix, are all slower than last year.

No one is as busy as they were a couple years ago. However, most economists were thinking and telling us we were going into a recession by the third/forth quarter of this year.
So, everywhere was very cautious the first quarter. It picked up significantly in April and May. It has continued to be busier than many anticipated.

There is still a new for new housing. What has changed is that houses are in the form of multifamily and condos more than single family stand alone.

The other thing they I keep hearing is that roughly 1/3 of houses being bought are purchased for cash. NO MORTGAGE.
Which typically means they are trading a more expensive house for a less expensive house or the same price and their current house is paid off. They are not getting as 7% mortgage to buy the new residence.


4 posted on 08/16/2023 6:48:09 AM PDT by woodbutcher1963
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To: EEGator

lumber yards NOT mumber


5 posted on 08/16/2023 6:48:50 AM PDT by woodbutcher1963
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To: woodbutcher1963

Thank you, and understood.

Except for who is buying the larger house that the downsizers are selling?


6 posted on 08/16/2023 6:51:53 AM PDT by EEGator
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To: woodbutcher1963
Our area is still a strong market and we are facing a shortage of homes and apartments. If you sell your home here, you are moving else where because you will find nothing you can afford locally. Realtors are buying properties before they even hit the market. They either make them rentals or hold a bit and flip for even more money. They even purchased old motels and are converting them into apartments. This is all driven by construction on the military bases. Lots of new buildings because of force restructuring and replacing buildings torn down after the last hurricane. Projected to last seven years. So seven years from now we will be back to an excess of unsold properties and empty apartments.

I suspect that areas of the country will weather the economy as populations continue to shift. But States like Cali, Illnoise and NY will be a drag on the economy especially as their unfunded obligations become due as more Boomers are retiring every day. The Feds are still printing money out of nothing at an alarming rate, and food prices are going up. Anecdotally, I keep hearing about it being hard to get replacement parts for cars, lawn mowers even a ATM was down near our house for two months because parts were not available. Even certain food items are no longer being stocked. Not seeing signs of a solid economy outside housing starts.

7 posted on 08/16/2023 7:19:36 AM PDT by OldGoatCPO (No Caitiff Choir of Angels will sing for me. )
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To: EEGator

Houses selling as fast as they go on the market here in metro Atlanta. Inventory is very limited.


8 posted on 08/16/2023 7:57:14 AM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
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To: Georgia Girl 2

Are people or firms buying them?

Who wants to live in metro Atlanta?


9 posted on 08/16/2023 8:07:35 AM PDT by EEGator
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To: EEGator

Investors are doing a lot of buying but housing is pretty scarce so individuals are buying a lot of homes.

I don’t know why anyone would want to live in metro Atlanta. We are almost finished with the rehab of our house and are moving to our rural compound.

At 4:00AM this morning someone tried to kick our front door in. Mr. GG2 jumped up with his gun and went to investigate but they took off. Our cooler had been propped open to dry out on the front porch and it had been knocked over. We’ve had 20 break ins in our immediate area in the past couple of weeks. The crime is terrible.


10 posted on 08/16/2023 8:25:56 AM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
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To: Georgia Girl 2

Holy crap. Are you in ATL?


11 posted on 08/16/2023 8:27:06 AM PDT by EEGator
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To: Georgia Girl 2

Fence, big dog. Or move.

I left North Atlanta (south Duluth) in 2020>>>to Huntaville.


12 posted on 08/16/2023 9:43:23 AM PDT by citizen (Put all LBQTwhatever programming on a new subscription service: PERV-TV)
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To: Kaiser8408a

Mortgage applications don’t document cash sales. I moved to a small rural town and homes here are being largely bought by other retiree buyers for cash. Homes form the 1700s and 1800s renovated and restored going for 500k to 1500k


13 posted on 08/16/2023 9:49:08 AM PDT by KC Burke
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To: OldGoatCPO

where is your area geographically?


14 posted on 08/16/2023 9:49:12 AM PDT by woodbutcher1963
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To: citizen

We’re shortly moving to our rural compound near Cornelia.


15 posted on 08/16/2023 10:07:10 AM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
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To: woodbutcher1963

Eastern NC


16 posted on 08/16/2023 5:31:15 PM PDT by OldGoatCPO (No Caitiff Choir of Angels will sing for me. )
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