Chicago, IL (PRWEB) March 01, 2014
The National Association of Home Builders has released on February 27th the Multifamily Production Index (MPI) and the Multifamily Vacancy Index (MVI), revealing a slight decrease in builder sentiment but also a decrease in the perception of vacancies. These two indexes are leading indicators of the economy which provide “information on likely movement in the Census figures one to three quarters in advance," as stated in the release.
The MPI components, which measure “production of new apartments in current vs. prior quarter” include low rent starts, market rent starts, and for sale starts. All three decreased by at least 3 points for Q4 of 2013. Expected production of new apartments for the next 6 months in these three components also decreased by at least 3 points in Q4. The current MPI of 50 is not bad in retrospect, as scores in 2008 were as low as 16, and scores in 2011 were as low as 42.
The MVI dropped 2 points this quarter to a score of 38. A lower number in this measure is positive because it reflects fewer vacancies. In 2009, MVI scores were as high as 70, and have improved significantly since then. CF Funding hopes to see the MVI improve to its peak scores, such as the 1st quarter of 2006, where vacancy indexes were as low as 26.
NAHB Chief Economist David Crowe said in the release that the results were consistent with a forecast of increased production of apartments in 2014 “at a slower pace than last year." Crowe reminded readers that the weather has had quite an effect on these economic indicators: “due to unusually severe weather in parts of the country… disrupted supply chains and affected confidence in several sectors of the economy.” Read more about how the weather has affected the housing industry on the CF Funding News Feed.
CF Funding is happy to announce that mortgage rates lowered over the past week from 4.49% on Monday the 24th to 4.35% on Thursday the 27th, according to Mortgage News Daily’s best-execution rate. Today the 30-year fixed rate saw a slight increase of +.03 percent but it still low compared to earlier in the week. MND says the rates are now close to early February’s rates, “which were the lowest since November.”
Those who are renting but considering buying a home should take advantage of these low rates before they rise this year. Contact a CF Funding loan specialist by calling (630)328-8900.