Sunday, June 15, 2008
LOS ANGELES - The surge in oil prices is driving up the cost of key construction materials and further eroding the confidence of homebuyers. Prices have gone up for steel, copper, aluminum, concrete, asphalt, bricks and plumbing fixtures, among other materials, and homebuilders are feeling the pressure from suppliers to foot the bill. In total, the wholesale price of building materials for new house construction has gone up by 3.4% overall in April from a year earlier, according to the Labor Department.
"Any material which is petroleum-based or transportation-intensive will have pricing pressure during periods of rising oil prices," according to a Purchasing, Planning & Design Atlanta based company. Manufacturers are trying to push cost increases through for materials like carpet, asphalt roof shingles and insulation. For now higher oil prices might be hurting consumers more than homebuilders, but this still hurts homebuilders.
"Any material which is petroleum-based or transportation-intensive will have pricing pressure during periods of rising oil prices," according to a Purchasing, Planning & Design Atlanta based company. Manufacturers are trying to push cost increases through for materials like carpet, asphalt roof shingles and insulation. For now higher oil prices might be hurting consumers more than homebuilders, but this still hurts homebuilders.
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posted by Real Estate Investing @ 9:44 PM
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Wednesday, June 4, 2008
NEW YORK - Mortgage application volume fell 7.8 percent during the week ending May 16, according to Mortgage Bankers Association's weekly application survey, the MBA's application index fell to 621.6 from 674.4 the previous week as both refinance and purchase volume declined.
Refinance volume dropped by 8.7 percent during the week, while purchase application volume fell 6.9 percent. Refinance applications accounted for 48.2 percent of all applications during the week, compared with 48.7 percent the previous week. The index peaked at 1,856.7 during the week ending May 30, 2003, at the height of the housing boom.
The average rate for traditional, 30 year fixed-rate mortgages climbed to 5.9 percent from 5.82 percent a week earlier. The average rate for 15-year fixed-rate mortgages, a popular option for refinancing a home, climbed to 5.42 percent from 5.38 percent. Rates for a one-year adjustable-rate mortgage averaged 6.71 percent during the week, compared with 6.6 percent the previous week.
Refinance volume dropped by 8.7 percent during the week, while purchase application volume fell 6.9 percent. Refinance applications accounted for 48.2 percent of all applications during the week, compared with 48.7 percent the previous week. The index peaked at 1,856.7 during the week ending May 30, 2003, at the height of the housing boom.
The average rate for traditional, 30 year fixed-rate mortgages climbed to 5.9 percent from 5.82 percent a week earlier. The average rate for 15-year fixed-rate mortgages, a popular option for refinancing a home, climbed to 5.42 percent from 5.38 percent. Rates for a one-year adjustable-rate mortgage averaged 6.71 percent during the week, compared with 6.6 percent the previous week.
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posted by Real Estate Investing @ 5:06 AM
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