|
But the Fed held off last month, and since then mortgage rates have moved lower. Last week, the average rate on a 30-year loan edged up to 4.23 percent from 4.22 percent a week earlier, according to mortgage buyer Freddie Mac. Those are both the lowest averages since July. Now, the partial government shutdown and uncertainty over a possible U.S. debt default are weighing most on builders' confidence. Furloughs at the Federal Housing Administration are slowing the agency's processing of loan guarantees for some low- to moderate-income borrowers and first-time homebuyers. About 30 percent of U.S. home mortgages are insured by the FHA. And some lenders are having a hard time getting confirmation of applicants' income tax returns and Social Security data because of government agency closures, delaying some mortgage closings. In addition to the uncertainty over the federal government's budget battle, the survey also highlighted concerns over the cost and availability of construction labor. The latest survey, which is based on 261 respondents, a measure of current sales conditions for single-family homes fell two points to 58, while a gauge of traffic by prospective buyers dipped two points to 44. Builders' outlook for single-family home sales over the next six months also slid two points to 62. Though new homes represent only a fraction of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to data from the homebuilders association.
[Associated
Press;
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.