Sunday, June 15, 2008
The shoot up in oil prices are driving up the cost of construction materials which are also further eroding the confidence of homebuyers. Costs of goods like copper, steel, aluminum, concrete, bricks, asphalt and plumbing fixtures gone up and homebuilders are able to feeling the pressure from suppliers to foot the bill. In total, the wholesale price of construction materials for new house 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 asphalt roof shingles, insulation and carpet. For now higher oil prices are affecting consumers more than homebuilders, but this still affects 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 asphalt roof shingles, insulation and carpet. For now higher oil prices are affecting consumers more than homebuilders, but this still affects homebuilders.
posted by Real Estate Agent @ 9:47 PM permanent link | Post a Comment | 0 comments 
Wednesday, June 4, 2008
NEW YORK - Mortgage application volume dropped by 7.8 percent during the week ending May 16, according to Mortgage Bankers Association's weekly application survey, the MBA's application index dropped to 621.6 from 674.4 the previous week as both refinance and purchase volume declined.
Refinance volume fell by 8.7 percent during the week, while purchase application volume dropped by 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 rose 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, went up 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 fell by 8.7 percent during the week, while purchase application volume dropped by 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 rose 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, went up 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.
posted by Real Estate Agent @ 5:09 AM permanent link | Post a Comment | 0 comments