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By Hiranmayi Srinivasan, Associate Editor

What's Happening Today

Good morning! It's Hira with your daily morning digest.

This morning, the National Association of Home Builders (NAHB) released its latest Housing Market Index, which tracks homebuilder sentiment, and is widely used to gauge the outlook for the U.S. housing market. The index posted a reading of 77 for the month of April, falling 2 points from the March figure. The index has declined for four straight months as surging costs of materials and labor have weighed on builders. The latest Producer Price Index, released last week, showed that the costs of materials for producers rose 1.4% in March, and were up 11.2% from last year—the largest annual jump on record since the data were first calculated in 2010. Building materials have climbed 8% since the start of 2022, according to the NAHB.

Home sales have cooled recently as costs remain high on limited inventories and the Federal Reserve raises interest rates to combat inflation, also making loans like mortgages more expensive for borrowers. Existing home sales plunged 7.2% in February, hitting the lowest number of homes sold since August 2021. Later this week, we'll find out if they continued to fall in March. The average rate offered to homebuyers on a conventional 30-year fixed mortgage climbed to 5.87% last week—its highest rate since 2019—before falling to 5.61% on Friday, according to data collected by The Balance.

Later this week, we'll also get more data on the construction of new homes with an update on March housing starts and permits from the U.S. Census Bureau. The construction of new homes had increased 6.8% in February, which could help boost inventory, and offset the shortage of homes on the market.

And tune in tomorrow, Tuesday, April 19, at 12 p.m. Eastern for The Balance's second Financial Literacy Month Instagram Live series, where we'll discuss the topic of building (generational) wealth. Join The Balance Editor-in-Chief Kristin Myers with featured guest Kara Stevens, finance coach, speaker, and author. Follow us on Instagram to get updates on The Balance's live events this month!

- Hira

Editors' Picks

How 'Shadow' Debt Dogs Students at For-Profit Schools (The Balance)

Can I Use a Retirement Account To Pay for College? (The Balance)

11 Tips For First-Time Homebuyers (The Balance)

42% of Women Investors Say They Got Started During the Pandemic, Survey Shows (CNBC)

How Much Money Should You Contribute to Your Roth IRA? (The Balance)

How Compound Interest Makes Roth IRAs Worth It (The Balance)

What Are the Pros and Cons of Certificates of Deposits? (The Balance)

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Off the Charts

Whether you're going on a spring break trip with friends or traveling with family, be prepared to pay more for everything from airfare and hotel reservations to car rentals. An analysis of Bureau of Labor Statistics data by The Balance found prices have significantly increased in the U.S. for spring-time travel and entertainment.

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Number of the Day

54% - That's the share of people who said requesting an extension from the IRS gives you more time to pay, when in fact, it only gives you more time to file your return.

For The Balance's second Financial Literacy Month IG live series, we're discussing the topic of building (generational) wealth. Join our Editor-in-Chief, Kristin Myers with featured guest Kara Stevens, finance coach, speaker and author. The event is on Tuesday, April 19 at 12 p.m. EST. Follow us on Instagram to get updates on The Balance's live events this month!

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