PulteGroup Inc

Latest PulteGroup Inc News and Updates

  • uploads///Mortgage Rates
    Consumer

    Mortgage rates fall as bonds sell off, affecting homebuilders

    The average 30-year fixed-rate mortgage rose 12 basis points as the ten-year yield rose 10 basis points, and TBAs sold off. With the refinance boom over, originators are overstaffed.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae Attitudes about housing expected px appreciation
    Consumer

    Why consumers are more conservative about housing than the pros

    In the latest survey, consumers expect home prices to rise by 2.9% over the next 12 months. This is flat month-over-month and down 100 basis points year-over-year.

    By Brent Nyitray, CFA, MBA
  • uploads///Lennar Revenues
    Consumer

    Lennar reports increases in units and prices in 2nd quarter 2014

    For the second quarter, Lennar reported $1.64 billion in revenues. This is an increase of 29% year-over-year. Homebuilding revenues increased 28%, to $1.6 billion from $1.3 billion in the second quarter of 2013.

    By Brent Nyitray, CFA, MBA
  • uploads///MVA
    Macroeconomic Analysis

    Housing Stocks Rallied Then Came to a Halt in December

    Housing has been a bright spot in the US economy. But over the past month, housing stocks haven’t been performing well. ITB, a housing-focused fund, has fallen 4.7%.

    By Lara Sheldon
  • uploads///Mortgage Rates
    Consumer

    Why mortgage rates have been flat with the bond market, at 4.17%

    The average 30-year fixed-rate mortgage was flat at 4.17%, as the ten-year yield rose 1 basis point, while TBAs rallied. With the refinance boom over, originators are overstaffed

    By Brent Nyitray, CFA, MBA
  • uploads///Nonfarm Payrolls
    Macroeconomic Analysis

    Jobs Report Postponed until Friday, May 8

    The jobs report should have gone out last Friday. But the BLS decided to postpone it until this Friday, May 8. Unless the report is unusually good, the bond market will probably take it in stride.

    By Brent Nyitray, CFA, MBA
  • uploads///Government Spending
    Consumer

    Does the economy need a government spending shot in the arm?

    Do we need a new New Deal? Construction spending doesn’t have to be simply residential (or private construction). Public construction also matters (however, it’s less than half of private construction dollars). The use of federal construction dollars to increase demand in the economy has been an issue of tremendous debate, with one side believing that […]

    By Brent Nyitray, CFA, MBA
  • uploads///Construction Spending
    Consumer

    Why construction spending pulls back in June

    Construction spending is just off its post-recession high, but it’s still depressed—current levels equate to mid-2003 spending levels—construction spending peaked at $1.2 trillion in March, 2006.

    By Brent Nyitray, CFA, MBA
  • uploads///MR KBH
    Consumer

    KB Home swings to a profit and its turnaround stays on pace

    Unlike some of the other builders, KB is a turnaround story. The company believes its strategic focus on first-time and move-up homebuyers is finally beginning to pay off.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae Attitudes about housing expected px appreciation
    Consumer

    Consumers are tempering their home price appreciation expectations

    The 2.3% home price expectation is much lower than the 6%–7% forecast we’re seeing out of the National Association of Realtors and the mid single-digit forecast we’re seeing from most Wall Street professionals.

    By Brent Nyitray, CFA, MBA
  • uploads///DHI Gross Margins
    Earnings Report

    D.R. Horton’s Gross Margins Fall Slightly

    Like most other builders, D.R. Horton has been reporting lower gross margins due to sticker shock. Home prices have been increasing, but wage growth has been stagnant.

    By Brent Nyitray, CFA, MBA
  • uploads///Construction Spending
    Consumer

    Construction Spending Fell in June

    In June 2016, private construction fell 0.6%, and public construction fell 0.6% month-over-month.

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Consumer

    Must-know: Why mortgage rates rose slightly as bonds sold off

    Mortgage rates are the lifeblood of the housing market, which is why the Fed began conducting quantitative easing (or QE) in the first place. Lower rates allow homeowners to refinance.

    By Brent Nyitray, CFA, MBA
  • uploads///Richmond Fed
    Consumer

    Manufacturing activity keeps improving in the Mid-Atlantic region

    The Richmond Fed Manufacturing Survey looks at business conditions in the Fed’s fifth district, which covers Washington, DC, Baltimore, Richmond, and Charlotte.

    By Brent Nyitray, CFA, MBA
  • uploads///Foreclosure Completions
    Real Estate

    Foreclosure Completions Drop In October

    Since foreclosures represent a process that may or may not wind up with the bank owning the home, foreclosure completions are a better indicator of foreclosure activity than foreclosure starts.

    By Brent Nyitray, CFA, MBA
  • uploads///Consumer Price Index
    Consumer

    Investor outlook: Consumer price inflation meets the Fed’s target

    This report will probably hold the hawks on the Fed at bay and allow them to continue to maintain ultra-low interest rates. The Fed wants to see annual inflation of about 2%.

    By Brent Nyitray, CFA, MBA
  • uploads///New Home Sales
    Macroeconomic Analysis

    Why did new home sales surge in December?

    New home sales jumped 11.6% in December from a month ago to a seasonally adjusted annual rate of 481,000.

    By David Ashworth
  • uploads///Chart  EBITDA Margin
    Company & Industry Overviews

    What Does D.R. Horton’s EBITDA Margin Say?

    D.R. Horton’s EBITDA margin was at 10.1% as on March 2015, much better compared to 2.3% for fiscal 2011.

    By Peter Barnes
  • uploads///Foreclosure Starts
    Consumer

    Why foreclosure starts ticked up in October but are still falling

    Foreclosure starts are closely watched by investors, realtors, and homebuilders alike because they forecast future housing supply.

    By Brent Nyitray, CFA, MBA
  • uploads///Hourly Earnings
    Macroeconomic Analysis

    Wages Dipped Slightly in December: Here’s Why

    Average hourly earnings fell by 1 cent on a month-over-month basis in December 2015 and were up 2.5% year-over-year to $25.24. Average weekly hours were flat at 34.5.

    By Brent Nyitray, CFA, MBA
  • uploads///DHI Gross Margins
    Earnings Report

    D.R. Horton Maintained Its Gross Margins

    D.R. Horton’s gross margins held steady at 19.9% in the fourth quarter of 2015. However, they fell on a YoY (year-over-year) basis from 20.5% in the fourth quarter of 2014.

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Consumer

    Mortgage Rates Are Not Buying The Rally Yet

    The average 30-year fixed-rate mortgage decreased six basis points to close at 3.92%. The ten-year bond rose and yields decreased by 15 basis points.

    By Brent Nyitray, CFA, MBA
  • uploads///Leading Economic Indicators
    Consumer

    Index of Leading Economic Indicators takes a breather in August

    The Index of Leading Economic Indicators (or LEI) is a business cycle indicator. It’s based on 11 different economic statistics—average workweek, initial jobless claims, new orders, building permits, unfilled durable goods, commodity prices, consumer expectations, stock prices, and money supply.

    By Brent Nyitray, CFA, MBA
  • uploads///Housing Starts LT
    Consumer

    How D.R. Horton plans to address the first-time homebuyer

    D.R. Horton CEO Donald Tomnitz said that the first-time homebuyer will drive the next leg in the sector and has been underserved in this recovery.

    By Brent Nyitray, CFA, MBA
  • uploads///Housing starts
    Macroeconomic Analysis

    A Closer Look at the August 15 Drop in Housing Starts

    Housing starts fell from a downward-revised ~1.16 million to ~1.13 million in August 2015. This was below Wall Street estimates of just over 1.16 million.

    By Brent Nyitray, CFA, MBA
  • uploads///JOLT Job Openings
    Consumer

    The FOMC Leaves The Big Question About Jobs Unanswered

    There was no discussion of the “speed limit” issue in the July FOMC minutes. This is generally a “cyclical versus structural unemployment” issue.

    By Brent Nyitray, CFA, MBA
  • uploads///Consumer Price Inflation rates
    Macroeconomic Analysis

    Key for Investors: Understanding Inflation and Its Implications

    Inflation represents a rise in the general price level in a country or region. The higher the inflation, the lower the quantum of a particular good that can be purchased.

    By David Ashworth
  • uploads///MBA Purchase Index
    Financials

    Seasonality Trumps The Bond Market Rally

    The MBA Purchase Index decreased 6.9% in the week ended December 12, 2014, despite a strong bond market rally.

    By Brent Nyitray, CFA, MBA
  • uploads///Homeownership Rate
    Consumer

    Why the homeownership rate has declined to 65% in this recession

    The homeownership rate rose precipitously during the housing bubble. This was due to several reasons.

    By Brent Nyitray, CFA, MBA
  • uploads///Chart
    Company & Industry Overviews

    Why you should invest in homebuilder ETFs like XHB and ITB

    ETFs present another investment avenue. Apart from pure homebuilder ETFs, there are many other ETFs that offer exposure to homebuilders.

    By Peter Barnes
  • uploads///Household formation vs Housing Starts
    Consumer

    Must-know: Will the government help the first-time homebuyer?

    Between low prices and low borrowing rates, the first-time homebuyer should have been set. However, lenders greatly tightened credit standards and many first-time homebuyers found themselves shut out of the mortgage market.

    By Brent Nyitray, CFA, MBA
  • uploads///Housing starts
    Consumer

    Housing starts rebound, driven by multi-family construction

    Housing starts are a critical predictor of future homebuilder sales Housing starts are released jointly by the Census Bureau and the Department of Housing and Urban Development. Analysts use the information to anticipate future production for homebuilders, future demand for raw materials, and labor costs. This data will even affect the forecasts for home-related retailers, […]

    By Brent Nyitray, CFA, MBA
  • uploads///Construction Public GDP
    Company & Industry Overviews

    Analyzing the New Deal: Do We Need a New One?

    Historically, the use of public construction dollars has been the big lever that the government uses to stimulate the economy. This dates back to the New Deal.

    By Brent Nyitray, CFA, MBA
  • uploads///Industrial Production
    Consumer

    A decline in manufacturing causes industrial production to fall

    Up until January, industrial production and manufacturing production had been accelerating, so it is premature to draw any major conclusions from one disappointing report.

    By Brent Nyitray, CFA, MBA
  • uploads///FHFA House Price Index
    Consumer

    Must-know: Why home-price appreciation is leveling off

    In July, home prices increased 0.1% month-over-month. They’re up 4.4% year-over-year (or YoY). Prices are now within 6.5% of their April 2007 peak. They correspond to the levels in July 2005. Real estate values drive consumer confidence and spending. They have an enormous impact on the economy.

    By Brent Nyitray, CFA, MBA
  • uploads/// regulations
    Macroeconomic Analysis

    How Zoning Regulations Impact City Development

    Zoning is the way that governments supervise land development and the kinds of uses each individual property may be directed toward for the public interest.

    By Peter Barnes
  • uploads///construction spending percent
    Consumer

    Why construction spending is so important to the economy

    Historically, construction spending has led economies out of a recession.

    By Brent Nyitray, CFA, MBA
  • uploads///MR NAHB
    Consumer

    Homebuilders note momentum pause as buyers digest rate increases

    The National Association of Homebuilders (NAHB) Sentiment Index came in at 58—the highest reading since July 2005, and only the third time since the bust that more homebuilders considered conditions to be more “good” than “poor.”

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Purchase Index
    Consumer

    Purchase applications fall as we enter the seasonally slow period

    The MBA Purchase Index decreased 2.6% last week in response to strong bond market sell-off and a holiday-shortened week. We’re entering the seasonally slow period for the real estate sector, which pretty much lasts as long as football season.

    By Brent Nyitray, CFA, MBA
  • uploads///Manufacturing Production
    Consumer

    Manufacturing production drops due to bad winter weather

    Manufacturing output fell 0.8% after increasing 0.3% in December. The output for utilities rose 4.1% in January on cold weather in the Northeast.

    By Brent Nyitray, CFA, MBA
  • uploads///Richmond Fed
    Consumer

    Mid-Atlantic manufacturing remains sluggish, bad news for NVR?

    The Richmond Fed Manufacturing Survey looks at business conditions in the Fed’s fifth district, which covers Washington, DC, Baltimore, Richmond, and Charlotte The Richmond Fed Manufacturing Survey is sent out to companies in the Mid-Atlantic states and covers current business conditions, shipments, new orders, backlog, and inventory. It’s similar to the other surveys put out […]

    By Brent Nyitray, CFA, MBA
  • uploads///Personal Consumption Expenditure Core Rate Chg
    Consumer

    Inflation continues to come in below the Fed’s target: What does this mean? A double-edged sword?

    Inflation is a double-edged sword. The Fed (or Federal Reserve) likes to see a little inflation because it’s associated with rising wages. But deflation causes a lot of economic problems, especially for the Fed.

    By Brent Nyitray, CFA, MBA
  • uploads///Housing Starts LT
    Consumer

    Must-know: Current housing starts from a historical perspective

    Following the collapse, we saw starts average around 687,000 units per year, with a low of under half a million.

    By Brent Nyitray, CFA, MBA
  • uploads///Housing Starts LT
    Consumer

    Could margins for homebuilders like Toll Brothers contract?

    Manufacturing activity is a good sign for job growth, which has been the Achilles’ heel of this recovery. Although manufacturing isn’t the driver of the economy that it used to be, it still matters.

    By Brent Nyitray, CFA, MBA
  • uploads///NAHB Housing Market Index
    Macroeconomic Analysis

    Behind Homebuilder Sentiment So Far in May

    The NAHB Wells Fargo Housing Market Index measures homebuilder sentiment has been increasing steadily since 2009. Recently, it’s started to accelerate.

    By Brent Nyitray, CFA, MBA
  • uploads///Consumer Sentiment
    Consumer

    University of Michigan Consumer Confidence Index dips in August

    The Thomson Reuters/University of Michigan Consumer Confidence Index is a leading indicator for the U.S. economy The Thomson Reuters/University of Michigan Consumer Confidence Index is an important indicator of the consumer’s perception of the U.S. economy. Similar to other consumer confidence measures, it asks consumers about their views on the current economic conditions and their […]

    By Brent Nyitray, CFA, MBA
  • uploads///KB Home Revenue
    Earnings Report

    KB Home Just Reported Strong Revenue Growth for 2Q16

    For 2Q16, KB Home reported revenues of $811 million, which easily topped the Wall Street estimate consensus of $750 million. Revenues increased by 30% YoY.

    By Brent Nyitray, CFA, MBA
  • uploads///Fed funds target
    Consumer

    A bond market sell-off greets Yellen’s first FOMC announcement

    Yesterday, the Federal Reserve ended its March FOMC meeting and decided to continue to reduce asset purchases.

    By Brent Nyitray, CFA, MBA
  • uploads///Mortgage Rates
    Real Estate

    Mortgage rates fall despite a bond market sell-off

    Over the past several months, mortgage rates and the ten-year bond yield stopped correlating. Last week, this trend broke as the two variables lined up once again.

    By Brent Nyitray, CFA, MBA
  • uploads///Senior LO Survey
    Consumer

    Why credit is still easing but subprime is gone from the banks

    Credit eased during the quarter, but it was primarily associated with commercial real estate and commercial or industrial lending.

    By Brent Nyitray, CFA, MBA
  • uploads///Pending Home Sales
    Consumer

    A lack of first-time buyers: Pending home sales fall again

    The return of the first-time homebuyer is the missing link to a more normal housing market. Household formation numbers have been depressed since the Great Recession began.

    By Brent Nyitray, CFA, MBA
  • uploads///Pending Home Sales
    Consumer

    Why did pending home sales rebound after a slow start to 2014?

    Given that the first-time homebuyer is still in a difficult financial situation with a weak job market and high student loan debt, homebuilders are focusing more on the move-up buyer.

    By Brent Nyitray, CFA, MBA
  • uploads///NAHB Housing Market Index
    Consumer

    Homebuilder sentiment dips as traffic slows and shutdown persists

    Builders noted the shutdown and the impending debt ceiling have depressed consumer confidence, and this is flowing through to traffic.

    By Brent Nyitray, CFA, MBA
  • uploads///MR pending home sales
    Consumer

    Pending home sales declined in August as mortgage rates increased

    The Pending Home Sales Index (PHSI), a proprietary index from the National Association of Realtors based on contract signings, fell 1.5%, to 107.7 in August from 109.4 in July.

    By Brent Nyitray, CFA, MBA
  • uploads///mortgage rate long term
    Consumer

    Bernanke’s comments send mortgage rates screaming higher

    The recent bond market sell-off bumps up mortgage rates again Mortgage rates are the lifeblood of the housing market, which is why Bernanke and the Fed began conducting quantitative easing (or QE) in the first place. Lower rates allow homeowners to refinance, which increases their disposable income and helps stimulate economic growth. Lower rates enable first-time home […]

    By Brent Nyitray, CFA, MBA
  • uploads///len pe
    Earnings Report

    How Does Lennar Compare to Its Peers?

    Lennar showed mixed results compared to its peers based on the PE and PBV ratios. The ETFs outperformed Lennar based on the PE and PBV ratios.

    By Gabriel Kane
  • uploads///GDP
    Macroeconomic Analysis

    Brexit Will Overshadow Economic Data This Week

    We do have some important economic data this week—personal income and spending, the third revision to first quarter GDP, and construction spending.

    By Brent Nyitray, CFA, MBA
  • uploads///bfcebacbcbbcebeedd
    Macroeconomic Analysis

    The bad: Why the housing market has yet to find shelter

    The housing market, especially construction, has been a cause of concern to policymakers in the Federal Reserve.

    By David Ashworth
  • uploads///Lennar Revenues
    Earnings Report

    Lennar Keeps Reporting Big Increases in its Revenue

    For the first quarter of 2015, Lennar (LEN) reported $1.6 billion in revenue. This is an increase of 21% year-over-year.

    By Brent Nyitray, CFA, MBA
  • uploads///Manufacturing Production
    Financials

    Manufacturing Production Increased In November

    Manufacturing output increased 1.1% in November. Durable goods’ production increased 1%. Auto-related manufacturing increased as well. Business equipment increased 1.2%.

    By Brent Nyitray, CFA, MBA
  • uploads///Housing starts
    Consumer

    Housing starts increase in September to 1.018 million

    Most builders—like Lennar (LEN), PulteGroup (PHM), D.R. Horton (DHI), and KB Home (KBH)—noted that traffic was beginning to decline. Buyers experienced sticker shock.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae Attitudes about housing good time to buy
    Macroeconomic Analysis

    Introduction to the Fannie Mae National Housing Survey

    Homebuilders use data from the Fannie Mae survey to measure consumers’ attitudes toward future home price appreciation. This affects attitudes about risk-taking.

    By Brent Nyitray, CFA, MBA
  • uploads///Construction Spending
    Consumer

    Must-know: Why did construction spending tick up in April?

    Construction spending rose to a seasonally adjusted annual rate of $953.5 billion in April from $951.6 billion in April. Spending is up 8.6% year-over-year.

    By Brent Nyitray, CFA, MBA
  • uploads///construction spending percent
    Real Estate

    Construction spending is very important for the economy

    If residential home prices begin to level off, then the builders will have to increase units to drive the top line. This will be bullish for the economy because it will put a lot of people to work.

    By Brent Nyitray, CFA, MBA
  • uploads///New Home Sales
    Macroeconomic Analysis

    New Home Sales Rose to a 7-Year High in February 2015

    The report on new home sales looks at new, privately owned single-family homes sold in a month. New home sales account for one-tenth of the US housing market.

    By David Ashworth
  • uploads///Housing Starts LT
    Macroeconomic Analysis

    Housing Starts Have A Long Way To Go To Reach Normalcy

    Following the collapse, we saw starts average ~687,000 units per year with a low of under half a million. That’s a tremendously depressed level.

    By Brent Nyitray, CFA, MBA
  • uploads///Foreclosure Completions
    Consumer

    Will foreclosure completions’ 1,000 unit rise affect builder stocks?

    Foreclosure activity is closely watched by investors, realtors, and homebuilders alike because it forecasts future housing supply.

    By Brent Nyitray, CFA, MBA
  • uploads///Unemployment rate LT
    Consumer

    Week in review: Why a lousy jobs report is a bond rally catalyst

    The ten-year bond is the basic driver of REITs and also the homebuilders Long-term interest rates are priced off the benchmark long-term bond, which is the ten-year Treasury. These days, the ten-year bond reacts to economic data through the Federal Reserve’s asset purchase program, also known as quantitative easing (or QE). As a general rule, […]

    By Brent Nyitray, CFA, MBA
  • uploads///US High Yield Bond Market Issuance
    Company & Industry Overviews

    High-Yield Bond Issuance Rose Last Week

    The total US dollar-denominated issuance of high-yield debt stands at $56.9 billion YTD in 2016—29% lower compared to the same period in 2015.

    By Lynn Noah
  • uploads///Nonfarm Payrolls
    Macroeconomic Analysis

    Labor Market Ended 2015 with Strong Payroll Growth in December

    In December 2015, non-farm payrolls increased by 292,000, easily topping Wall Street’s estimate of 200,000.

    By Brent Nyitray, CFA, MBA
  • Consumer

    Why home prices should be moderated—Home Price Index

    The 20-city index reading for March, implied an average month-on-month (or MoM) price increase of 0.9% in the 20 metros tracked by the index.

    By Phalguni Soni
  • uploads///Housing Starts LT
    Macroeconomic Analysis

    Declining energy prices may not be enough to maintain margins

    Manufacturing activity is a good sign for job growth. Job growth has been the Achilles’ heel of this recovery. Although manufacturing isn’t the economic driver it used to be, it still matters.

    By Brent Nyitray, CFA, MBA
  • uploads///AdobeStock__Editorial_Use_Only
    Company & Industry Overviews

    Is Walmart the Ultimate Recession-Proof Stock?

    Walmart (WMT) has a long history and strong brand name recognition. But is there reason to believe WMT stock could actually withstand an economic meltdown?

    By David Moadel
  • uploads///Foreclosure Starts
    Real Estate

    Foreclosure Starts Drop: Good News For The Builders

    The overall drop in foreclosure activity over the past year is good news for homebuilders. Currently, gross margins are experiencing seven-year highs.

    By Brent Nyitray, CFA, MBA
  • uploads///construction spending percent
    Real Estate

    Putting Construction Spending Into Economic Perspective

    We’ve seen big increases in average selling prices out of homebuilders such as Lennar Corporation (LEN), Toll Brothers Inc. (TOL), D.R. Horton, Inc. (DHI), and Pulte Homes, Inc. (PHM).

    By Brent Nyitray, CFA, MBA
  • uploads///Building Permits
    Industrials

    Building Permits Fall In November As Skilled Labor Becomes An Issue

    Building permits and housing starts data are released jointly by the Census Bureau and the Department of Housing and Urban Development.

    By Brent Nyitray, CFA, MBA
  • uploads///Manufacturing Production
    Financials

    Manufacturing Activity Continues to Chug Along

    We’re seeing energy-intensive industries relocate back to the US. This will do wonders for the employment picture. It will provide good-paying middle-class jobs—which this country desperately needs.

    By Brent Nyitray, CFA, MBA
  • uploads///Foreclosure Starts
    Real Estate

    Why foreclosure starts tick up in September

    The large foreclosure pipeline in the judicial states is one reason why prices are still weak in the northeast. Homebuyers don’t focus solely on existing supply.

    By Brent Nyitray, CFA, MBA
  • uploads///Construction Spending
    Real Estate

    Construction spending falls again, a negative for the economy

    Construction spending is just off its post-recession high, but it’s still depressed. Current levels equate to mid-2003 spending levels.

    By Brent Nyitray, CFA, MBA
  • uploads///Lennar EPS
    Consumer

    Earnings Preview: Lennar Homes

    Lennar Corporation (LEN) is a large, relatively diversified homebuilder with a broad geographic footprint. The company focuses on the non-luxury segments.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae Attitudes about housing expected px appreciation
    Consumer

    Consumers are less bullish on home prices than the pros

    Most people didn’t believe the declines early in the bear market, so we shouldn’t be surprised that people don’t believe we’re in a bull market for homes.

    By Brent Nyitray, CFA, MBA
  • uploads///Empire State Manufacturing Survey
    Consumer

    New York manufacturing activity decreases from a multi-year high

    The General Business Conditions Index showed that manufacturing continued to expand in New York, but at a slower rate than the month before. 31.4% of respondents reported better conditions, while 16.7% reported worse conditions—the net result was 14.7%. This was a decrease from last month.

    By Brent Nyitray, CFA, MBA
  • uploads///Case Schiller
    Consumer

    Home prices’ double-digit appreciation continues, driving builders

    It’s important to for investors to understand how real estate prices affect mortgage REITs like Annaly (NLY), American Capital Agency (AGNC), and Redwood Trust (RWT) as well as homebuilders.

    By Brent Nyitray, CFA, MBA
  • uploads///NAHB Housing Market Index
    Consumer

    Homebuilder Sentiment Improved in August

    The NAHB Wells Fargo Housing Market Index, which measures homebuilder sentiment, peaked at 71 during the height of the housing bubble in late 2005. It bottomed out at 8 in early 2009.

    By Brent Nyitray, CFA, MBA
  • uploads///Housing starts
    Consumer

    Did Housing Starts Rise Again in July?

    In July, the Northeast saw housing starts jump from 116,000 to 134,000, while starts rose from 171,000 to 175,000 in the Midwest.

    By Brent Nyitray, CFA, MBA
  • uploads///Foreclosure Completions
    Consumer

    Why Did Foreclosure Completions Rise in June?

    In June, the total foreclosure inventory fell 26% from a year ago to 375,000 homes. This works out to be about 1% of all homes with mortgages.

    By Brent Nyitray, CFA, MBA
  • uploads///Job Cuts
    Consumer

    Job Cuts Rose in July but Fell Sharply on an Annual Basis

    Planned job cuts rose 19% in July compared to June. However, they fell 57% YoY (year-over-year) in July.

    By Brent Nyitray, CFA, MBA
  • uploads///Junk Bond Yields in  and
    Company & Industry Overviews

    Post Holdings Issued the Most Junk Bonds in the Week to July 29

    Post Holdings (POST) issued junk bonds worth $1.75 billion on July 25. The senior notes were rated B3/B and carried a coupon of 5.0%.

    By Lynn Noah
  • uploads///DHI EPS
    Consumer

    For Now, D.R. Horton Avoids Fallout from Declining Energy Prices

    D.R. Horton (DHI) reported net income of $294.8 million, or $0.66 per share, for 3Q16.

    By Brent Nyitray, CFA, MBA
  • uploads///Housing starts
    Consumer

    How the Hot Rental Market Contributed to Housing Starts

    In June 2016, housing starts rose from 1.1 million to ~1.2 million. We also saw increases in both single-family and multifamily starts.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae Attitudes about housing good time to buy
    Consumer

    Why Many Homeowners Think It’s a Good Time to Sell

    Fannie Mae’s monthly National Housing Survey asked respondents if it’s a good time to buy and sell a house. They’re more confident that it’s a good time to sell.

    By Brent Nyitray, CFA, MBA
  • uploads///Housing Starts LT
    Consumer

    Homebuilder Earnings and Housing Data on Tap this Week

    This week is relatively data-light. However, a slew of reports will interest real estate investors.

    By Brent Nyitray, CFA, MBA
  • uploads///Hourly Earnings
    Consumer

    Why Wage Inflation Could Be Picking Up

    Given the terrible growth in payrolls, we might see more flattening of wage inflation back towards the current inflation rate.

    By Brent Nyitray, CFA, MBA
  • uploads///Nonfarm Payrolls
    Consumer

    June Payrolls Rebound after a Dismal May

    In June 2016, non-farm payrolls rose by 287,000. Non-farm payrolls easily topped Wall Street analysts’ estimate of 180,000.

    By Brent Nyitray, CFA, MBA
  • uploads///Retail Sales
    Consumer

    Quiet Week between the Jobs Report and FOMC Meeting

    The week after the jobs report usually doesn’t have much data—more or less, this week isn’t an exception. Earnings season kicks off this week.

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Purchase Index
    Consumer

    Mortgage Purchase Applications Fell Last Week

    Mortgage purchase applications fell 3% in the week ending June 24, 2016. We’re at the tail end of the seasonally strong period for house purchases.

    By Brent Nyitray, CFA, MBA
  • uploads///Hourly Earnings
    Macroeconomic Analysis

    Average Hourly Earnings Rose in May

    Aside from employment, the most important indicator of economic well-being is wages.

    By Brent Nyitray, CFA, MBA
  • uploads///Nonfarm Payrolls
    Macroeconomic Analysis

    May Payrolls Were Exceptionally Weak

    In May 2016, non-farm payrolls rose by 38,000, which missed Wall Street analysts’ estimate of 160,000 by a wide margin.

    By Brent Nyitray, CFA, MBA
  • uploads///US Core Consumer Price Index
    Macroeconomic Analysis

    Why Did Treasury Yields Rise Last Week?

    US Treasury yields rose across the yield curve for the week ended May 20, 2016. This came as minutes of the FOMC April meeting raised the probability of a rate hike in June.

    By Lynn Noah
  • uploads///GDP
    Macroeconomic Analysis

    2nd revision to 1Q16 GDP Will Be the Highlight of the Week

    On Friday, May 27, we’ll get the second revision to 1Q16 GDP. Wall Street is forecasting the number to come in at 0.9%.

    By Brent Nyitray, CFA, MBA
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