In today’s news, Home sales face headwinds in November in the midst of a housing market! Find out more now!

Home Price Gains Slow

In October, the Case-Shiller U.S. National Home Price Index, which covers all nine census divisions in the United States, climbed 19.1 percent on an annual basis. In September, the yearly gain was 19.7%. The 10-City Composite was up 17.1 percent year over year, down from 17.9 percent the previous month, and the 20-City Composite rose 18.4 percent year over year, down from 19.1 percent the last month.

While prices rose in October, they did so at a slower pace. According to Craig J. Lazzara, Managing Director at S&P DJI, October’s gains were lower than September’s, while September’s gains were lower than August’s in all three indices. “We have previously suggested that the strength in the U.S. housing market is being driven in part by a change in locational preferences as households react to the COVID pandemic. More data will be required to understand whether this demand surge represents an acceleration of purchases that would have occurred over the next several years or reflects a more permanent secular change.”

Pending Home Sales Slip in November Amid Hot Housing Market

In November, pending home sales, a leading index of the housing market’s health fell short of forecasts. The National Association of Realtors’ (NAR) Pending Home Sales Index, which counts the number of properties under contract to be sold, fell 2.2 percent in November from October. According to Bloomberg consensus forecasts, analysts projected a 0.8 percent gain in revenue. 

Buyer competition alone is unrelenting, but home seekers have also had to contend with the negative impacts of supply chain disruptions and labor shortages this year,” NAR Chief Economist Lawrence Yun said in a statement. “These aspects, along with the exorbitant prices and a lack of available homes, have created a much tougher buying season.”

Housing demand remains high, according to Yun, who added that homes on the market for sale go from “listed status” to “under contract” in around 18 days.

Next weeks potential market moving reports are:

  • Monday, January 3rd – Construction Spending          
  • Tuesday, January 4th – Job Openings
  • Wednesday, January 5th – ADP Employment Report, FOMC Minutes
  • Thursday, January 6th – Initial Jobless Claims, Continuing Jobless Claims
  • Friday, January 7th – Unemployment Rate, Consumer Credit

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends.  I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at (800) 216-1047.

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Fed Moves Up Timetables

On Wednesday, the Federal Open Market Committee said that it would accelerate its tapering of agency mortgage-backed securities and signaled that its schedule for increasing the federal funds rate would be pushed as well.

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Fannie Mae’s November Home Purchase Sentiment Index reports that the US housing market remains solid despite rising economic negativity to its highest level in a decade

MBA Weekly Applications Survey December 8, 2021: Rates Drop; Refis Up

The Mortgage Bankers Association said Wednesday in its Weekly Mortgage Applications Survey for the week ending December 3rd that mortgage interest rates declined for the first time in four weeks, spurring an increase in refinancing activity. 

The Market Composite Index gained by 2% over the previous week on a seasonally adjusted basis. The unadjusted Refinance Index rose 9% from the prior week, and the refinance percentage of total mortgage applications grew to 63.9 percent from 59.4 percent the week before. 

The seasonally adjusted Purchase Index fell by 5% from the week prior. The FHA’s percentage of total applications grew to 9.9% from 8.9% the previous week. The share of overall applications submitted by veterans increased to 10.7%.

Home Purchase Sentiment Unfazed By Negative Economic SentimentM

Fannie Mae’s November Home Purchase Sentiment Index reports that the US housing market remains solid despite rising economic negativity to its highest level in a decade (HPSI).

In November, the index fell 0.8 points to 74.7, with 74 percent of consumers believing now is a good time to sell a property and 29 percent considering it is an excellent time to buy. The HPSI was down 5.3 points from the same time last year.

However, any bad economic sentiment has yet to convert into a meaningful decline in actual demand for purchase mortgages. According to Mark Palim, Fannie Mae’s deputy chief economist, most of the pessimism about the economy’s direction is likely due to inflation. He also added that “An even greater share of consumers (particularly those with low and moderate incomes) expect mortgage rates to go up in the next 12 months, which may be a signal that some households plan to pull-forward their home purchase plans; despite growing economic apprehension.” 

Weekly Jobless Claims Fall To 184,000,  Lowest Level In Over 52 Years

The Labor Department said Thursday that weekly unemployment claims fell to a new 52-year low last week as the US jobs market emerges from its pandemic-era rut.

The week ending December 4th saw 184,000 initial unemployment insurance claims, the lowest since September 6, 1969, when 182,000 were filed. Continuing claims increased 38,000 to slightly under 2 million, a week below the headline number. The four-week moving average for continuing claims, which smooths out weekly volatility, fell by 54,250 to 2.03 million.

Next weeks potential market moving reports are:

  • Monday, December 13th – No Report
  • Tuesday, December 14th – Small Business Index
  • Wednesday, December 15th – Home Builders’ Index, Federal Reserve FOMC Announcement
  • Thursday, December 16th – Initial Jobless Claims, Building Permits, Housing Starts
  • Friday, December 17th – No Report

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends.  I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at (800) 216-1047

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