Bryan Flynn's Central Massachusetts Mortgage Blog

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May 16th Rate update - House Starts / Building Permits

The bond market had a nice close to the day yesterday up 72 bps on the day but above key level of resistance.  In order to confirm that rise we needed some momentum going into today's open.  Well we did not get that and we are slightly below that level of resistance for now, I guess we will see what happens.

In economics news both Housing Starts and Building Permits came in better than expected.  So that poises a question: 

Why are housing starts and building permits up when we already have such a high inventory of homes on the market?

Opinions?

Comment balloon 2 commentsBryan Flynn • May 16 2008 07:52AM

Comments

I guess because the builders need some way to make money.  If they don't build houses, how will they earn enough to feed their families?  My guess is that they will sell the homes for less than the current re-sale comps and that would further drive down the market.

Posted by Lisa Friedman, Central New Jersey Real Estate (Alliance Realtors) over 10 years ago

Brian it is an interesting question in regards to building permits and housing start. I suspect that this is just a blip?

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) over 10 years ago

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