The latest home price news from the FHFA on home prices, decreasing foreclosure numbers, Freddie Mac’s outlook for housing & the economy. Plus much more…
Several big stories to discuss. First up…
FHFA on Home Prices
The FHFA just reported that US house prices in August 2013 rose 0.3% on a seasonally adjusted basis from the July 2013 level. This is the nineteenth consecutive monthly price increase according to FHFA. FHFA said that US home prices in August 2013 are up 8.5% YOY.
Check out the chart showing home prices:
Sadly US home prices are still 9.4% below their April 2007 peak. The thing that concerns me is how home prices have been increasing at a pace that is eerily similar to what we saw before the housing bubble burst.
LPS just released their latest report on foreclosures and I am glad to say it has good news! The highlights are:
- Delinquent loans are down 12.3% year over year
- Loans in foreclosure are down 32% from last year
- The percentage of loans in foreclosure is at the lowest level since February 2009
All this sounds great but I must mention that the loan delinquency rate did increase from August 2013 to September 2013. Over all, the news from LPS is positive though.
Freddie Mac Economic & Housing Outlook
Freddie Mac just released their Economic and Housing Market Outlook for October 2013. Here are some of the highlights:
- By the end of the year, expect mortgage rates to be around the 4.3%
- Freddie expects mortgage rates to be even higher in 2014
- Housing units added in 2013 and 2014 to be significantly below normal levels
- The economy won’t be operating at full potential until sometime after 2015
Frank Nothaft, Freddie Mac vice president and chief economist said:
The housing recovery keeps chugging along despite a constant barrage of disruptions to the broader economy. We’re likely going to see the housing recovery slow down, but not shut down, as we close out the rest of this year due to tight inventories in many markets, rising mortgage rates and slumping consumer confidence. Fortunately, the housing recovery should continue to absorb the economic shocks in stride and improve next year.
Unemployment Kinda Sorta Improves
The BLS reported the Unemployment numbers for September 2013 earlier this week. The US unemployment rate was 7.2% which is down from 7.3% in August. This is the lowest level for the unemployment rate since November 2008. The Labor Force Participation Rate was unchanged at 63.2% which is below the 66% to 67% rate that was normal over the last 20 years.
Not much change but what did change was an improvement!
Around the Net
And in case you missed them, check out these must reads from around the net:
Fed Study: Home sales should rise if house prices do
Sad But True: Greatest Risk to the Economy Is Washington
Um See Previous: NAR Uses Big Data To Make a Big Difference for Realtors