Stock Power Daily — 93-Rated Homebuilder Loves This Mortgage Rate Trend

Stock Power Daily: February 3, 2023. [Turn Your Images On] --------------------------------------------------------------- Managing Editor’s note: Today’s newsletter is all about the housing market. Research analyst Matt Clark shows you why one homebuilder is set to soar even higher. And don’t forget to check out Mike Carr’s Chart of the Day for his take on the state of the broader home market. — Chad Stone --------------------------------------------------------------- [Lower Mortgages + Red-Hot Locales: Potent Combo for a 93-Rated Homebuilder]( - Mortgage rates are trending down again. - The average 30-year fixed mortgage rate is at its lowest point since October 2022. - Today’s Power Stock is a homebuilder in some of the fastest-growing areas of the U.S. and rates a 93 on our proprietary system. [Turn Your Images On] [Matt Clark, Research Analyst]( In real estate it’s all about location, location, location. Another huge factor when buying a home is mortgage rates (i.e., the percent of interest on a home loan). The Federal Reserve’s rapid interest rate hikes have walloped prospective homeowners. Buying a house is now much more expensive than it was even 12 months ago. But after months of ripping higher, mortgage rates are trending lower once again. [Turn Your Images On] [(Click here to view larger image.)]( The Federal Reserve Bank of St. Louis calculated the average 30-year fixed mortgage rate to be 6.13% in the last week of January. That’s the lowest the average rate has been since September 2022, when the average rate was 6.02%. This means it is becoming more advantageous for potential homebuyers to get a competitive rate … thus increasing the number of homes being bought. And that sets up well for the company I just found using our proprietary Stock Power Ratings system. [Click here to reveal this ticker now.]( [Turn Your Images On]( --------------------------------------------------------------- [Turn Your Images On]( From our Partners at Oxford Club. [The #1 Stock Under $5]( Virginia Stock-Picking Millionaire Says It’s Not About Diversification! One single stock under $5- that trades under a secret name- could help you build your retirement. [His details are here.]( --------------------------------------------------------------- The Laws of Supply and Demand Say Housing Will Boom [Turn Your Images On] [Michael Carr, Editor, The Banyan Edge]( Analysts are underestimating the strength of the housing market because a lack of supply will keep prices relatively high. The laws of supply and demand are straightforward: When demand increases and supply falls, prices rise. In the housing market, demand is rising as new households are built. Supply changes slowly since it takes time to build housing developments. [The chart]( from the U.S. Census Bureau below shows the vacancy rate is 0.9%. Before the housing bubble, the rate averaged 1.6%. It's been falling steadily since peaking in 2008, and unless supply increases, vacancies will continue to fall. Bottom line: Homebuilders have slowed construction in response to higher interest rates so supply is steady to lower. This is yet another reason to expect home prices to hold steady or rise from here. [Turn Your Images On] [(Click here to view larger image.)]( --------------------------------------------------------------- Check Out the Latest From Stock Power Daily: - [WHY INTEL STOCK IS NOW “HIGH-RISK”]( - [1 “HIGH-RISK” DATA CO. SHOULD ANALYZE ITS OWN NUMBERS FIRST]( - [$10 BILLION BREAKFAST INDUSTRY BOOSTS THIS 93-RATED STOCK]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. 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