US Mortgage Applications Fall -10.6% as Interest Rates Rise Higher Again

The Mortgage Bankers Association showed mortgage applications in the US for the week ending 16 February 2024 slumped 10.6%. The 30-year fixed rate increased to 7.06% from 6.87% the week before. The sharp rise in the average home loan rate saw both purchase and refinancing activity have a marked decline, as sentiment, and the ability to get a loan has deteriorated as it becomes progressively worse after the opening two months of the year. The Refinance Index slumped to 427.0 … Continue reading “US Mortgage Applications Fall -10.6% as Interest Rates Rise Higher Again”

US New Home Sales Slump 12.2% in November, South Down 20.9% on Supply

New home sales fell 12.2% month-over-month in November in the largest decline since April 2022. There were at a seasonally adjusted annual rate of 590,000 units (consensus 689,000) from a downwardly revised 672,000 (from 679,000) in October. On a year-over-year basis, new home sales were up 1.4%. New home sales activity fell hard paced by the South, largest region for new home sales where prices are generally more affordable. The weakness stems somewhat from supply constraints for lower-priced homes and … Continue reading “US New Home Sales Slump 12.2% in November, South Down 20.9% on Supply”

US Existing Home Sales Rebound 0.8% in November as Mortgage Rates Fall

US existing home sales in November rose 0.8% on the month to 3.82M vs 3.77M estimate and the prior month 3.79M annualized, finishing a five-month drop. Sales retreated 7.3% from one year ago.The median existing-home sales price rose 4.0% from November 2022 to $387,600, the fifth consecutive month of year-over-year price increases. Inventory is still tight at 1.130M or 3.5 months, down 1.7% from the previous month. High mortgage rates, high selling prices, and limited inventory are still holding back … Continue reading “US Existing Home Sales Rebound 0.8% in November as Mortgage Rates Fall”

NAHB Housing Market Index Shows Some Life in December, First Improvement in 5 Months

NAHB/Wells Fargo housing market index moved up to 37 in December 2023 from 34 in November, ahead of forecasts of 36. It was the first improvement in sentiment in five months, bouncing off its lowest point since December 2022. The positivity came from declining mortgage rates that sparked increased interest among potential buyers and raised expectations for sales. The sub-index for expected home sales over the next six months went up to 45 from 39. The fall in the housing … Continue reading “NAHB Housing Market Index Shows Some Life in December, First Improvement in 5 Months”

US New Home Sales Slump 5.6% in October, Downwardly Revised for September

New home sales fell 5.6% month-over-month in October to a seasonally adjusted annual rate of 679,000 units (consensus 720,000) from a downwardly revised 719,000 (from 759,000) in September. On a year-over-year basis, new home sales were up 17.7%. Noticeably new home sales activity slumped in October despite a big drop in median and average selling prices. The latter had to do with a large decline in sales in the high-priced West region. What is clear is inflation and high mortgage … Continue reading “US New Home Sales Slump 5.6% in October, Downwardly Revised for September”

US Existing Home Sales Fell 4.1% in October at Slowest Pace Since August 2010

High mortgage rates, high selling prices, and limited inventory saw US existing home sales at the slowest pace of sales since August 2010. The National Association of Realtors said the sales decreased 4.1% month-over-month in October to a seasonally adjusted annual rate of 3.79 million (consensus 3.90 million) from a downwardly revised 3.95 million (from 3.96 million) in September. Sales were down 14.6% from the same period a year ago. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.44% … Continue reading “US Existing Home Sales Fell 4.1% in October at Slowest Pace Since August 2010”

NAHB Housing Market Index Slumps Further in November Back to Lowest Since December 2022

NAHB/Wells Fargo housing market index slump continues, falling for a fourth month by 6 points to 34 in November 2023, significantly below the market’s expected level of 40. The index is at its lowest point since December 2022. The fall has been swift as affordability has plummeted with high interest rates and inflation. Just back in July we saw the highest reading at 56 in this cycle and was just the second time that sentiment levels have surpassed the midpoint … Continue reading “NAHB Housing Market Index Slumps Further in November Back to Lowest Since December 2022”

US Existing Home Sales Fell 2.0% in September to Lowest Since October 2010

US existing home sales from the National Association of Realtors decreased 2.0% month-over-month in September to a seasonally adjusted annual rate of 3.96 million. Sales retreated 15.4% from one year ago. Existing-home sales rose in the Northeast but receded in the Midwest, south, and West. All four regions registered year-over-year sales declines. Inventory of existing homes for sale climbed 2.7% from the prior month to 1.13 million at the end of September, or the equivalent of 3.4 months’ supply at … Continue reading “US Existing Home Sales Fell 2.0% in September to Lowest Since October 2010”

NAHB Housing Market Index Slumps Further in October as Interest Rates Soar

NAHB housing market index fell for a third month to 40 in October 2023 (consensus 45.0) following a revised 44 in September (from 45). This is the lowest level since January 2023, July was the highest reading at 56 in this cycle and was just the second time that sentiment levels have surpassed the midpoint of 50 since July 2022. Mortage rates since late September are up nearly 40 basis points to 7.57%, according to Freddie Mac. Single-family sales current … Continue reading “NAHB Housing Market Index Slumps Further in October as Interest Rates Soar”

US New Home Sales Declined 8.7% in August as Mortgage Rate Strangle Affordability

New home sales declined 8.7% month-over-month in August to a seasonally adjusted annual rate of 675,000 units (consensus 695,000) from an upwardly revised 739,000 (from 714,000) in July. On a year-over-year basis, new home sales were up 5.8%. Rising mortgage rates create added affordability pressures. Reality is though with rates over 7.2%, and inflation high- and real-income hurt lower affordability and supply pressures remain for many prospective buyers. There is some new home sales activity being helped by the tight … Continue reading “US New Home Sales Declined 8.7% in August as Mortgage Rate Strangle Affordability”