You're watching...
National Association of Homebuilders CEO Jerry Howard weighs in on the state of the housing market.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
What -- six consecutive months of gains for the housing market and that's the national association of homebuilders confidence has let.
For the month of April will this be a blip or is this going to -- the start of a slowdown in the spring selling season.
Putting me now for an exclusive interview NH UC EO president Jerry Howard -- it's -- great -- Talk -- -- -- -- one always is this weather is this because you saw a major build month over month with whether.
That there were confident now they're saying wait a minute contracts are coming again.
Well I think that's part of it -- were were concerned about.
This month's confidence index but we don't know yet whether it's just a blip -- the radar screen.
We said all along that this was going to be a slow and rocky recovery and maybe that's part of it.
Do you -- warm weather in the in the winter maybe push forward some of the demand and now we're seen easing.
On the other hand it could be that the housing consumers are looking at the federal government.
That has yet to take action -- the administration -- the congress on the housing finance system.
You've got candidates for president in both parties who -- talking about tax changes that we're further devalue housing.
And you've got this pent up demand.
People wanna jump in the water but they're afraid right now and and we don't know what what what that what is causing this this decline yet what -- have to study for the next couple months.
And one of the things that that -- kind of a zone didn't on the report here at respecting prospective buyer traffic was down four points.
That really seems to be kind of the crux of what happened here mean they were saying a lot of traffic coming again.
In the early spring season but contracts were not -- why the contract's not being.
Credit credit credit credit.
Again the federal government has got the constraints on credit both to buyers and builders both ends of the pipeline.
People are haven't it's a hard time get a contract done because they can't get the credit.
All right we're looking at shares -- home dollars again.
Being hit today I know that that you're not a stock analysts are looking at the housing side of this but I have to say that -- has -- -- -- a little disconcerting the -- When you see the sector -- to -- has been one of the strongest sectors that we have had.
In the first three months of this -- or anything positive Jerry that you can tell me that would change what are my viewers' minds from selling of stocks right now.
The positive is this is a one month blip right now.
My economists are telling me that nothing is a trend until it's consistent for two or three months let's wait till next month this could simply just be a blip right now it's too early to tell.
What about mortgage rates we -- still under 4% -- you mentions.
The credit issues so I guess -- I have a low mortgage rate three point 8% in some parts of the country three point 7% -- -- as the country depends on where you lead.
If I still think -- alone doesn't matter what my financing has right.
Rates can be zero if you can't get a bank to lend.
Good buyers money then you're not gonna have a housing recovery it's that simple.
And right now what we find Cheryl.
Is that it's not a mortgage application process people go through it's a mortgage inquisition process it's absolutely absurd how tight credit is for good qualified buyers is there any part of the country right now -- that you would point to as a success yet in house.
Well we still have on our improving markets index about a hundred.
Metropolitan areas where conditions are right.
For improvement ripe for growth.
If credit becomes available.
Jerry Howard national association of home both the dollar -- to have you on the show Gerri thank -- Sheryl -- and we'll talk in its monthly over the numbers are improving we hope so.
