Housing Snapshot
Mortgage interest rates increased for the third consecutive week as the financial markets watched further strengthening in the economy with expectations that the Federal Reserve at some point in the foreseeable future will be increasing its unsustainably low federal funds rate. A rise of 0.5% in the consumer price index in March fanned speculation that the Fed would be moving sooner rather than later, although inflation for the 12 months ending last month was only 1.7%. The Conference Board's Composite Index of Leading Economic Indicators moved up for the seventh consecutive month in March, adding to the perception that the economy is fast regaining its full strength. On the timber front, conditions worsened again last week and there is no indication that the markets have yet seen the worst of the price run-up as the peak home building season gets underway. Framing lumber climbed to $439 per 1,000 board feet from $420 during the previous week, Random Lengths reported, as plywood and oriented strand board continued to set new records. The mill price for 15/32-inch 3-ply CDX Southern Westside plywood was $525 per 1,000 square feet and OSB was $518. [ MORE ]
Mortgage Interest Rates
30-Year Fixed-Rate: 5.89%
15-Year Fixed-Rate: 5.23%
1-Year ARM: 3.69%
Housing Starts - Mar. 2004*
Total: 2.007 million
Single-Family Starts: 1.599 million
Multifamily Starts: 408,000
New Home Sales Feb. 2004*
1.163 million
Existing Home Sales Feb. 2004*
6.12 million
* Seasonally adjusted annual rate