William Staney

In the News

Building permits for privately owned housing units in May were at a seasonally adjusted annual rate of 518,000, according to the Census Bureau. The figure was 4.0 percent above the revised April rate of 498,000, but 47.0 percent below the May 2008 estimate of 978,000. Permits for single-family units in May were at a rate of 408,000, a solid 7.9 percent above the revised April figure of 378,000.

Housing starts for privately owned units in May were at a seasonally adjusted annual rate of 532,000, which is a healthy 17.2 percent above the revised April estimate of 454,000, but 45.2 percent below the May 2008 rate of 971,000. Single-family housing starts in May were at a rate of 401,000, 7.5 percent above the revised April figure of 373,000.

However, completions of privately owned housing units in May were at a seasonally adjusted annual rate of 811,000, 3.3 percent below the revised April estimate of 839,000, and 28.8 percent below the May 2008 rate of 1,139,000. Single-family housing completions in May were at a rate of 491,000, 9.4 percent below April's revised figure of 542,000.

The Consumer Price Index for all urban consumers (CPI-U) increased 0.3 percent in May, according to the Bureau of Labor Statistics. On a seasonally adjusted basis, the Bureau reports the CPI-U increased 0.1 percent in May after being unchanged in April. Over the last 12 months, the CPI has fallen 1.3 percent. This is the largest decline since April 1950. The Bureau said the decline is mainly due to a 27.3 percent decline in the energy index.

The Producer Price Index for Finished Goods (PPI) increased 0.2 percent in May, according to the Bureau. The rise followed a 0.3 percent gain in April and a 1.2 percent decrease in March. May's PPI also saw a 2.9 percent increase in finished energy goods prices, which more than offset both a 1.6 percent decline in the index for finished consumer foods, and a 0.1 percent decrease in prices for finished goods other than foods and energy.

Leading economic indicators (LEI) for the United States increased 1.2 percent - the biggest gain since March 2004 - for the second consecutive month in May, according to the Conference Board. While the U.S. LEI had been on a downtrend since peaking in July 2007, it has risen sharply in the past two months. The LEI is designed to forecast activity over the next three to six months by examining various components of the economy. Seven of the LEI's 10 components showed gains in May: building permits, consumer expectations, money supply, stock prices and deliveries of supplies to companies.

This week, keep an eye out for headlines on existing home sales (June 23) and new home sales (June 24) from the National Association of Realtors; orders for durable goods (June 24) from the Census Bureau; and Q1 gross domestic product (June 25) and personal income and consumption (June 26) from the Bureau of Economic Analysis.

In the News

U.S. retail sales for May rose by 0.5 percent from April, representing the first instance of upward momentum for retail sales in three months, according to the U.S. Census Bureau's latest report.

The increase was largely chalked up to buyers flocking to car showrooms in search of bargains from flagging dealers, as well as an increase in gasoline prices. Retail sales excluding autos still rose by 0.5 percent, with gasoline prices leading the trend.

That said, retail sales are still lagging far behind last year, with May's figures falling 10.8 percent below the same period from last year, according to the bureau.

Seasonally adjusted initial jobless claims for the week ending June 6 totaled 601,000, a decrease of 24,000 from the previous week's revised figure of 625,000, according to the Employment and Training Administration of the Department of Labor. The number of individuals collecting unemployment hit a record 6.82 million in the prior week, according to the administration.

The U.S. trade deficit reached $29.163 billion for April, which was 2.2 percent over March's revised figure of $28.532 billion, according to the U.S. Census Bureau's Bureau of Economic Analysis. April's exports were $2.8 billon less than March's exports of $123.9 billion, and April's imports were $2.2 billion less than March's imports of $152.5 billion, the bureau reported.

Exports of goods in April decreased by $2.6 billion to $80.0 billion. The drop in April reflects decreases in exports of industrial supplies and materials ($1.3 billion); capital goods ($1.1 billion); consumer goods ($0.5 billion); autos, parts and engines ($0.2 billion); and other goods ($0.2 billion). However the bureau noted an increase in exports of foods, feeds and beverages ($0.3 billion).

This week, look for headlines on building permits (June 16) and housing starts (June 16) from the Census Bureau; the producer price index (June 16) and the consumer price index (June 17) from the Bureau of Labor Statistics; and leading economic indicators (June 18) from the Conference Board.

Preparing to Paint Your House: The Basics

With warmer, drier weather, summer is an excellent time to give your home a new coat of paint. Remember, paint isn't just there for looks - it protects your house. So, don't delay. If your house needs painting, take care of it this season, rather than subjecting your aging exterior to another winter.

Start by inspecting your exterior. Look at the trim, walls and any siding. If you have fading and flaking overall, then you'll want to paint the whole house. If you see that there are just a few areas that have minor flaking or missing paint, your home just might need a touch-up. However, scrutinize each area, especially on siding and trim. Small spots could hide greater trouble, such as water damage.

If your exterior simply looks dingy, but the paint seems to be in good shape, you might not necessarily have to paint your home. Try giving it a power wash and see how it looks afterward. You might be happy with the results, and if not, you will need to wash your exterior prior to painting anyway.

If you hire a painting contractor to paint your home, start by fielding referrals from neighbors and local friends, family and coworkers. Once you have a few contractors in mind, have them review your exterior and provide a free estimate. After comparing their estimates, ask the painters that are still in the running to provide some customer referrals to help you make your decision.

Tip: If you have neighbors who want to paint their houses too, join forces with them and negotiate with contractors for a group discount.

U.S. construction spending for April surprised industry watchers as it climbed 0.8 percent over March, according to the U.S. Census Bureau, reversing predictions from economists that it would drop by a median 1.5 percent, according to Bloomberg.

April's gain represented a seasonally adjusted rate of $968.7 billion, compared to March's $961.3 billion, and was the largest since August, with residential construction showing a 0.6 percent gain.

Personal income increased $58.2 billion, or 0.5 percent in April, and disposable personal income (DPI) increased $121.8 billion, or 1.1 percent for the month, according to the Bureau of Economic Analysis. The BEA chalked up the increase in DPI - personal income less personal current taxes - as a result of provisions of the American Recovery and Reinvestment Act of 2009.

The slight bump up in income, however, failed to ignite increased consumer spending, with personal consumption expenditures (PCE) decreasing $5.4 billion, or 0.1 percent, which was slightly better than forecasts that PCE would decline 0.2 percent, the BEA reported.

New orders for manufactured goods show measured progress in April, with an increase of $2.5 billion or 0.7 percent to $344.4 billion, according to the U.S. Census Bureau. This followed a 1.9 percent March decrease. Excluding transportation, new orders increased 0.1 percent.

First quarter 2009 productivity statistics from Bureau of Labor Statistics of the U.S. Department of Labor were mixed, with a 1.8 percent gain in the business sector and a 1.6 percent gain in the non-farm business sector, but a 2.7 percent drop in manufacturing, a 10.4 percent drop in durable goods manufacturing, and a 1.9 percent drop in nondurable goods manufacturing.

This week, look for news on the balance of trade (June 10) and on retail sales (June 11) from the U.S. Census Bureau, and the Treasury budget (June 10) from the U.S. Treasury Department.

HUD: Tax Credit Can Be Used on Closing Costs

FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.

Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

The loans can't be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.

Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.

There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.

In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.

The first-time homebuyer tax credit was enacted last year--and improved upon earlier this year--to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven't owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.

Learn more about the credit, including how to apply for it this year even if you've already filed your taxes, at REALTOR.org.

Source: Robert Freedman, REALTOR® Magazine Online

NOTE: THIS IS A NEW ANNOUNCEMENT AND IT WILL TAKE TIME FOR LENDERS TO GEAR UP FOR THE PROGRAM.W. J. BRADLEY IS WORKING TO BE ONE OF THE FIRST IN AUSTIN TO OFFER THIS PROGRAM.