Discussing mortgage rates, the boogeyman in housing, new home sales, existing home sales and more!
From Freddie Mac:
- 30-year fixed-rate mortgages averaged 4.51% with an average 0.5 point
- This is down from last week when it averaged 4.53%
- Last year at this time, 30-year fixed-rate mortgages averaged 3.86%
- 15-year fixed-rate mortgages averaged 3.98% with an average 0.5 point
- This is down from last week when it averaged 4.01%
- Last year at this time, 15-year fixed-rate mortgages averaged 3.16%
From the MBA:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) remained unchanged from 4.81%, with points decreasing to 0.42 from 0.43 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) decreased to 4.68% from 4.73%, with points decreasing to 0.28 from 0.29 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.25% from 4.27%, with points decreasing to 0.47 from 0.52 (including the origination fee) for 80 percent LTV loans.
Lots of decreases reported this week but as always, these are the average rates and may not reflect what is possible for everyone. The best option for anyone looking to buy a home or refinance their mortgage is to talk to the lender of their choice to discuss their options.
The Boogeyman in Today’s Housing Market
From James Egan, Morgan Stanley’s cohead of US housing strategy in Business Insider:
If there’s a boogeyman in the housing market today, it’s affordability. As home prices and mortgage rates have risen, it logically follows that homes have become less affordable.
Which makes the recent decreases in mortgage rates especially good news/ And not just for home buyers since sellers need plenty of qualified buyers to ensure they sell quickly and for the best price.
Home Price Growth Declines
From Clear Capital:
National quarter-over-quarter (QoQ) home price growth fell 0.1 percent to 0.9 percent, and national year-over-year growth (YoY) fell 0.3 percent to 6.8 percent for August.
This is talking about the entire country and home price growth NOT prices. In other words, the rate that home prices are growing is slowing nationally.
As always, you MUST consult with a local Realtor to discuss what is happening in your local market. Remember, every market is different!
Mortgage Delinquencies at Lowest Level Since 2006
From Black Knight:
The decrease in mortgage delinquencies is great BUT foreclosure starts increased. Still a positive report since the number of delinquencies is at a 12 year low.
New Home Sales at 9 Month Low
New Home Sales
Sales of new single-family houses in July 2018 were 1.7% below the revised June rate but 12.8% above the July 2017 estimate.
The median sales price of new houses sold in July 2018 was $328,700. The average sales price was $394,300.
For Sale Inventory and Months’ Supply
The seasonally adjusted estimate of new houses for sale at the end of July was 309,000. This represents a supply of 5.9 months at the current sales rate.
It would appear that the US housing market could be cooling in some ways. But this may not reflect what is happening in every local market…
Check out the chart showing new single family home sales going all the way back to the 1960s:
You can see we are much better than after the housing market crashed but still low compared to healthy periods in the past. Especially when you think about population growth and the number of households formed…
US Existing Home Sales at Lowest Point in 2 Years
Existing-home sales decreased for the fourth straight month in July to their slowest pace in over two years, according to the National Association of Realtors®. Total existing-home sales decreased 0.7% to a seasonally adjusted annual rate of 5.34 million in July from 5.38 million in June. With last month’s decline, sales are now 1.5% below a year ago and have fallen on an annual basis for five months.
Yet another sign that the national housing market could be shifting. How much of this is due to the low number of homes for sale or affordability is hard to say.
What is happening in your local market means much more to anyone buying or selling a home than any of these national reports! Which is why anyone with questions about real estate in the Anderson SC area, should contact me!