About housing indicators
Housing is one of the most interest-sensitive parts of the economy and often one of the first to turn. Housing starts count new homes on which construction began, and new home sales count contracts signed for newly built single-family homes, usually the earliest sign that demand is changing. The months’ supply of new homes compares inventory with the sales pace and shows whether builders have too many homes or too few.
Home price growth uses the Federal Housing Finance Agency’s index of repeat sales to show how fast the value of a typical home is rising. For the cost of borrowing to buy, see the 30-year mortgage rate in the interest rate charts.
Quick reading tips
- New home sales are counted at contract, months before closing.
- About six months’ supply is usually seen as a balanced market.
- Home price growth is quarterly and arrives about two months after each quarter ends.