- Housing News
- August 20, 2021
Supply Chain Issues Slowing Down New Home Construction
It appears that June's good news on the new home front was short-lived, as a new report shows that construction of new single-family homes declined in July.
Ben is the Managing Editor for New American Funding. In this role, Ben helps with content creation, news coverage, and serving our audience of borrowers, real estate agents, loan originators, and other housing professionals. Prior to joining New American Funding, Ben worked at HousingWire, a top housing media outlet. Ben joined HousingWire in 2014 as a reporter and was later promoted to Senior Financial Reporter, Editor, and eventually to Managing Editor. During his time at HousingWire, Ben helped elevate HousingWire to national acclaim and record traffic growth. He was also honored with multiple awards for his work, including an Eddie Award from Folio Magazine and a Gold Award for Best Trade Magazine Story from the National Association of Real Estate Editors.
It appears that June's good news on the new home front was short-lived, as a new report shows that construction of new single-family homes declined in July.
If you've been paying attention to real estate over the last year, you saw home prices rise substantially…unless you lived in Springfield, Illinois, that is. That's because home prices rose in just about every major metropolitan area in the last year. The only market where prices fell? Springfield.
For much of the year, one of the common concerns among would-be homebuyers is that there are simply not enough homes on the market. It looks like there might be a bit of a light at the end of that tunnel, especially for first-time homebuyers.
If it seemed like more people were refinancing their mortgages in July, it’s because they were. A new report shows that refinance activity picked up significantly in July, with interest rate locks for rate and term refinances climbing by nearly 25% in one month.
Renters who want to become homeowners may soon find it easier to buy a home thanks to a significant lending policy change from Fannie Mae.
The constant increase in home prices over the last few years has continued to provide more financial benefits to owning a home.
Considering that May 2021 was the best month of May for real estate contract signings in 16 years, it may not come as a surprise that things cooled a bit in June. But the cooldown was ever so slight.
Thanks to the rise in remote work over the last 18 months, for many people, the days of being required to live in the same city as their job may be over. As a result, people are looking to live somewhere else, perhaps more than ever before.
Considering that mortgage applications for new home purchases were down in June, it probably shouldn’t come as a shock that when the new home sales data for June came out, it showed that sales were down too.
All the data indicated that existing home sales would rebound in June…and it looks like that’s just what happened.
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