Homebuilders face tighter credit conditions; Electric vehicle sales rise; Online job postings fall

Residential builders and developers reported more stringent credit conditions in the second quarter compared with the prior period, marking the 14th consecutive quarter of tightening credit availability, according to the latest national survey by the National Association of Home Builders.

While recent tightening has been relatively modest, respondents overall reported declines in credit availability tied to residential land acquisition, development and construction. The trade group said 60% of respondents cited reductions in the amount that lenders were willing to lend, with 53% citing requirements for personal guarantees, 40% noting increasing documentation requirements and 47% encountering situations where lenders raised interest rates or said they were not making new loans.

Lending stayed tight even as average interest rates on land acquisition loans declined from 8.23% in the first quarter to 7.82% in the second quarter, according to the survey.

In a separate survey compiled with Wells Fargo, the NAHB said confidence among builders of single-family homes was at 32 for August, down one point from July, with numbers below 50 generally indicating negative sentiment. Based on several metrics gauging business prospects, sentiment has remained in negative territory for 16 straight months.

“Affordability continues to be the top challenge for the housing market and buyers are waiting for mortgage rates to drop to move forward,” NAHB Chairman Buddy Hughes said in a statement. 

U.S. sales of electric vehicles posted strong gains in July, though analysts were watching to see whether momentum lasts after federal tax incentives for EV purchases expire next month.

July’s sales of new electric vehicles reached 130,082 units, rising 26.4% from the prior month and increasing 19.7% from a year earlier, according to a report from data firm Cox Automotive. Used EV sales totaled 36,670 units, marking increases of 23.2% for the month and 40% from a year earlier.

Cox analysts said purchase urgency is “likely to remain high” with tax credits set to expire at the end of September, positioning EV sales for continued strength through the remainder of the current third quarter. “July’s performance sets a strong precedent, and as policy support winds down, the market’s ability to respond to real-time demand and brand-level dynamics will be critical in shaping the next phase of growth,” said the report by Cox analyst Stephanie Valdez Streaty.

EV sales have significantly raised commercial real estate demand during the past decade, with Tesla and its rivals expanding manufacturing plants along with retail showrooms nationwide. 

Online job postings declined 0.1% in July after a 3.6% monthly drop in June, the latest among several indicators of slowed U.S. hiring, according to the latest Conference Board figures.

The economic research group tracks momentum of online help-wanted postings with data firm Lightcast, including those on industry-specific and general job sites, company websites and social media. July’s online postings were down 1% from a year earlier.

The latest Labor Department figures showed there were 7,437,000 total U.S. job openings at the end of June, down 275,000 from the prior month.