Housing and the economy remained sluggish and most economic data released during the past few weeks has been disappointing.

Existing home sales were down again in May, and the NAHB Housing Market Index fell in June to a nine-month low. Inflation, as measured by the producer and consumer prices indexes, continued to rise.

But some bright spots are beginning to emerge. House prices ended a 10-month slide as the Federal Housing Finance Agency House Price Index ticked up in April. And while housing starts continue to “bounce along the bottom,” they rose in May, recovering half of the previous month’s decline. In addition, oil prices, which peaked in April, receded by almost 15%, relieving some inflationary pressure.

Though some have suggested that housing has fallen out of favor with the American public, a new poll commissioned by NAHB suggests otherwise. The results indicate that homeownership remains a priority for most Americans. Meanwhile, Washington is targeting housing on a number of fronts — the expiration of the GSE and FHA loan limits, scaling back the mortgage interest deduction, etc.

Latest Postings

• House Prices Finally Turn the Corner, Rising 0.8% in April
  House prices turned the corner in April, after 10 consecutive months of decline. NAHB does not anticipate any further significant declines in house prices. Posted: June 22
  
  
• New Survey Shows Housing Remains a National Priority
  Homeownership and housing should remain national priorities, according to a national poll recently commissioned by NAHB to gauge likely voters’ attitudes toward housing and housing policy issues. Posted: June 22
  
  
• Poor May Existing Home Sales Reflect Soft Economy and Falling House Prices
  Existing home sales fell again in May, a casualty of the soft economy and falling house prices. Posted: June 21
  
  
• NAHB Chief Economist on the HMI Dropping Three Points
  A video link to NAHB Chief Economist David Crowe explaining the factors responsible for the latest fall in the HMI. Posted: June 15
  
  
• HMI Down Three Points
  The June NAHB/Wells Fargo Housing Market Index fell to a nine-month low of 13 — with the expectation index down four points, which tied the record low recorded in March 2009. Posted: June 15
  
  
• Consumer Price Index Up Again in May, But Energy Prices No Longer Rising
  The Consumer Price Index (CPI) was up in May — 0.2% for the month and 3.6% year-over-year. The energy price index ended its 10-month streak, but increases in food, clothing and vehicles pushed the CPI higher. Posted: June 15
  
  
• Growth in the Producer Price Index Slows in May
  Growth in the Producer Price Index (PPI) has finally begun to show signs of slowing — with growth in energy prices moderating but  still rising. While the composite index of inputs into residential construction rose slightly because of energy prices, the trend in the main building products was mixed. Posted: June 14
  
  
• Why Independent Contractors Are Important for the Construction Sector
  The construction sector is experiencing high rates of worker turnover, according to Bureau of Labor Statistics Job Opening and Labor Turnover Survey. This workforce flexibility enables builder to link demand for workers with available supply. Posted: June 14
  
  
• Household Deleveraging Slows, But Savings Rate Continues to Decline
  Deleveraging — households and businesses paying down their debts to restore net worth — restrains consumption and investment and is a major factor impeding any potentially robust economic recovery. Posted: June 10
  
  
• Households Continue to Deleverage, Mostly
  Total consumer credit outstanding increased for the seventh consecutive month, reaching its highest level since February 2010. It appears households might have a little more balance sheet repair work to perform before they can access credit lines and ramp up spending. Posted: June 10

Eye on the Economy is a bi-weekly digest of the latest economic and housing policy news, analysis and studies as posted on NAHB’s free Eye on Housing blog. The preceding is a reissue of his June 24 edition. To subscribe to Eye on the Economy, click here.

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