Remodeling market index
Both components of NAHB's Remodeling Market Index fell at the end of 2002. The RMI is not seasonally adjusted, so comparisons from the same quarter year to year are most useful. The RMI for current conditions dropped to 43.2, down from 45.0 in the fourth quarter of 2001. The future expectations portion of the Index experienced an even larger decrease, from 42.8 to 39.1.
Existing home sales
Existing home sales hit another record high in 2002. Preliminary totals indicate sales of 5,563,000 units, up 5% from the previous record, in 2001.
Second mortgage interest rates
Financing remodeling projects is as attractive as ever, with second mortgage interest rates at 4.95% in January, according to Fannie Mae. This is only a slight rise from December's record low of 4.94%.
Leading economic indicators
The Conference Board's Index of Economic Indicators rose for the third straight month in December. While this helped ease fears that the country is slipping back into a recession, the increases are modest and don't indicate a significant strengthening of the economy.
Consumer confidence
Consumer confidence dropped for the second straight month, from 80.7 in December 2002 to 79.0 in January 2003. While consumers viewed the current economic conditions relatively favorably, their expectations for the economy six months in the future fell sharply.