Sep 24, 2012 | Mortgage Rates
Mortgage markets improved for the second consecutive week last week as demand for U.S. mortgage-backed bonds remained high. A series of economic reports showed strength in housing and a stability in jobs.
Wall Street looked past it, however, to send mortgage rates to their lowest levels in history.
One week into the Federal Reserve’s newest bond-buying program, the stimulus appears to be working.
According to Freddie Mac, the average 30-year fixed rate mortgage rate slipped to 3.49% last week for borrowers willing to pay an accompanying 0.6 discount points at the time of closing. Discount points are a one-time closing costs where 1 discount point is equal to one percent of your loan size.
3.49% marks a new all-time low for the 30-year fixed rate mortgage.
The 15-year fixed rate mortgage rate fell to a new all-time low last week, too, dropping to 2.77% with the same accompanying 0.6 discount points.
Mortgage rates in Worcester County area fell despite strong housing data.
- Housing Starts rose 5.5% to a 2-year high
- Existing Home Sales rose 7.8% to a 2-year high
- Building Permits rose 0.2%
Notably, according to the National Association of REALTORS®, the national existing home supply slipped to 6.1 months last month — very close to the 6.0-month marker which separates a “buyer’s market” from a “seller’s market”.
If supplies continue lower, home prices may rise more quickly than expected into 2013. Median home sale prices are already 9.5% higher as compared to one year ago.
This week, more housing data is set for release including the home value-tracking Case-Shiller Index and FHFA Home Price Index. Both are expected to show rising home prices as compared to the last recorded month, and one year ago. In addition, the National Association of REALTORS® releases its Pending Home Sales Index.
Lastly, and likely most important to mortgage rates and home affordability in Worcester County area , the government releases its Personal Consumption Expenditures (PCE) report Friday. PCE is the Federal Reserve’s preferred inflation gauge. An unexpected increase is expected to move mortgage rates higher.
Sep 20, 2012 | Housing Analysis
The new construction housing market continues to make gains.
Wednesday, the U.S. Census Bureau reported Housing Starts for single-family homes up 5.5 percent in August to a seasonally-adjusted, annualized count of 535,000 units nationwide.
The report marks the fifth month of six that single-family starts increased, and marks the highest starts tally since April 2010 — the last month of that year’s federal homebuyer tax credit program.
A “housing start” is a new home on which construction has started and the steady growth in single-family starts suggests a stronger Worcester County area housing market into 2013.
All four U.S. regions showed single-family housing start growth on both a monthly basis and on an annual one :
- Northeast Region : 4.5% monthly growth; 31.4% annual growth
- Midwest Region : 15.6% monthly growth; 74.5% annual growth
- South Region : 3.2% monthly growth; 17.2% annual growth
- Midwest Region : 4.6% monthly growth; 23.9% annual growth
The data is just the latest in a series of signals that today’s Worcester County area new construction housing market has put its worst days behind it.
The nation’s home builders appear to agree, as well.
Earlier this week, the National Association of Homebuilders released its Housing Market Index, a monthly metric which measures homebuilder confidence in the new construction market.
The homebuilder trade association put the HMI at 40 — a 6-year high. Builders expect a strong finish to 2012 and for momentum to carry into 2013 and beyond.
The new construction market — like most of housing — has been fueled by a combination of the lowest mortgage rates in history, ample access to low- and no-downpayment mortgages, and an ever-shrinking supply of new homes for sale.
In July there were just 142,000 new homes for sale nationwide, down 14% from the year prior. As supply shrinks, all things equal, new home prices rise.
If you’ve been considering new construction, therefore, talk to builders sooner rather than later. As demand for homes heats up, prices are likely to rise.
Aug 21, 2012 | Housing Analysis
The market for newly-built homes remains strong.
As reported by the U.S. Census Bureau, July featured 502,000 single-family housing starts nationwide on a seasonally-adjusted, annualized basis, marking the fourth straight month during which single-family starts posted north of one-half million.
The last time this milestone occurred was in the four months ending April 2010 — the last month of that year’s federal home buyer tax credit.
A “housing start” is a home on which construction has started and the rise in single-family housing starts is yet one more signal to buyers in Worcester County area and nationwide that the housing market has likely put its worst days behind it.
Home builders, it appears, agree with that sentiment.
Last week, the National Association of Homebuilders reported builder confidence to be at a 5-year high. Sales levels have been growing since January and builders expect the next six months to be blowout. (more…)
Jul 19, 2012 | Housing Analysis
New construction housing is in a post-recession rally.
As reported by the Census Bureau, on a seasonally-adjusted, annualized basis, last month’s Single-Family Housing Starts rose 5 percent to 539,000 units nationwide. This is the highest reading since April 2010, the last month of that year’s federal home buyer tax credit.
A “housing start” is a new home on which construction has started.
June’s strong numbers also mark the fourth consecutive month during which Single-Family Housing Starts have climbed. This, too, has not occurred since April 2010.
The data is yet one more signal to Massachusetts home buyers that today’s new construction market has its worst days behind it.
Home builders think so, too.
Earlier this week, the National Association of Homebuilders released its monthly Housing Market Index, a metric which tracks homebuilder confidence. Home builders report higher (more…)
Jun 20, 2012 | Housing Analysis
Sometimes, the housing data headlines tell just half the tale. The stories on May’s Housing Starts figures are proving to be a terrific illustration.
Tuesday, the Census Bureau released its monthly Housing Starts report. A “housing start” is a home on which construction has started.
The report is separated by property type with a separate count for single family homes such as detached residences and town homes; for multiple-unit homes such as 2-unit, 3-unit and 4-unit structures; and, for buildings of 5-units of more such as new condominiums.
In May, Housing Starts fell 4.8 percent nationwide. This runs contrary to recent housing market statistics and home builder confidence data which both have suggested a recovery. (more…)
