Construction is looking good so far, with housing starts the highest since 2007. But the low inventory continues to be a concern for home buyers, pushing demand (and prices) up.
Mortgage originations beat expectations, likely due to the low rates keeping refinances relevant. The additional decreases we've seen in rates should help spur more refinances. With these refinances, many were cashing out their home equity. The first quarter saw 49 percent of refinance borrowers taking cash out, up from 44 percent the previous quarter. This remains down from the peak of 89 percent in Q3 of 2006.