Salient to Investors:
Builders are rushing to satisfy growing demand for rental units. Work on multi-family homes, such as apartment buildings, jumped 31 percent to an annual rate of 417,000, the most since January 2006.
Aneta Markowska at Societe Generale said demand from homebuyers or renters does not matter because it’s roofs over peoples’ heads.
John Stumpf at Wells Fargo said the momentum from the housing rebound during 2012 has remained strong in the early months of 2013. Wells Fargo, which funded 1 in 4 US mortgages in 2012, expects steady gains in home sales, building activity, and price appreciation as housing affordability remains excellent.
The NAHB/Wells Fargo index of confidence fell in April to the lowest since October.
The number of new single-family homes on the market fell in July and August to the lowest level since records began in 1963.
The average rate on a 30-yr fixed mortgage fell to 3.43 percent last week versus the record low of 3.31 percent in November 2012.
Russell Price at Ameriprise Financial said homebuilding may generate as many as 500,000 jobs in 2013 and 700,000 in 2014, including related services.
Michael Feroli at JPMorgan Chase said residential investment could boost economic growth by 0.5 percent in 2013.
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