My Financial Healthcheck

Confidence rose among U.S. homebuilders in February to a three-month high, the index increased to 17, from 15 the prior month.  Readings below 50 mean most view conditions as being poor, expect the index to reverse itself with the bad weather in February.  Two things, higher interest rates and the homebuyers tax- credit expiring in a few months could damping expectations.  Lumber prices have climbed 32% this year which will also hurt builders bottom line.  In a recent report it was shown that 70.8% of all homes sold in the U.S. during the forth quarter of 2009 could be afforded by the nation’s medium income of $64,000.  The record was 72.5% during the first quarter of 209, compared to 55% in the second quarter of 2008.    Indianapolis, Detroit and Dayton were the top three most affordable cities, with New York being the least affordable market.  New home construction rose more than expected in January, the number of building permits issued dropped.   The construction index was up 2.8% while permits were down 4.9%.  Under the Protecting Tenants at Foreclosure Act which Congress passed last May, tenants are usually eligible to stay after the property has been foreclosed as long as they have a valid lease and are paying their rent on time.  Even renters on a month to month lease get 90 days to leave.  Fewer borrowers fell behind on their payments during the last three months of 2009.