Latest / Markets with Megan: A Quick Financial Markets Update / 024: Housing Report 07-20-23

Transcript

024: Housing Report 07-20-23 · Markets with Megan: A Quick Financial Markets Update

• 0:05
  Speaker 0: Welcome to Markets with Megan.
• 0:07
  Speaker 0: This is Megan Horniman, the Chief Investment Officer for Verdance Capital Advisors.
• 0:11
  Speaker 0: We're going to come today and talk a little bit about the housing data that we've received this week.
• 0:15
  Speaker 0: I'm starting with the home builder sentiment, which has consistently been improving in recent months.
• 0:20
  Speaker 0: And it's been improving because the inventory of existing homes that are on the market that purchasers can buy is very low.
• 0:28
  Speaker 0: That's because people are not willing to give up their low interest rate mortgages to go and purchase a home with mortgage rates near 7%.
• 0:35
  Speaker 0: So we're seeing home builder sentiment increase because we're seeing more demand for actually new construction.
• 0:42
  Speaker 0: Now today we also got the building permits for the month of June, and this is what we like to see as a leading indicator for construction.
• 0:48
  Speaker 0: They were disappointing.
• 0:50
  Speaker 0: They actually declined for the month and came in less than expected.
• 0:54
  Speaker 0: We still think that we're not going to take one month as a whole trend here, but housing will continue to be challenged by a couple of things Again high interest rates and no inventory.
• 1:05
  Speaker 0: So we don't think this is a huge impact on our outlook for economic growth.
• 1:10
  Speaker 0: It's just one of the things that we do like to look at and investors like to hear about, especially when you see the headlines about the housing market.
• 1:17
  Speaker 0: So that's all I have today.
• 1:18
  Speaker 0: If you have any questions, comments or feedback, please feel free to reach out to podcast at burdenscom.