Eileen's Blog

U.S. Housing Market Back On Target

April 8th, 2016 11:50 AM by Eileen Denhard

Many of the nation’s housing markets are
getting back to normal heading into the spring
homebuying season, according to the recently
released Freddie Mac MultiIndicator
Market
Index® (MiMi®).However, there are pockets of
weakness, particularly in the Great Lakes
Region and the South outside of Florida and
Texas.
The national MiMi value stands at 82.7,
indicating a housing market that’s on the outer
range of its historic benchmark level of housing
activity, and little changed with just a +0.18 percent improvement from December to
January and a threemonth
improvement of +1.46 percent. However, on a yearoveryear
basis, the national MiMi value has improved +7.57 percent. Since its alltime
low in October
2010, the national MiMi has rebounded 40 percent, but remains significantly off from its
high of 121.7.
“Despite a stronger jobs market and declining unemployment, wage gains have not kept
pace with house prices putting a pinch on homebuyer affordability,” says Freddie Mac
Deputy Chief Economist Len Kiefer. “In the top 100 metro areas MiMi tracks, Los Angeles
and Honolulu have elevated paymenttoincome
indicators and Miami, FL, is very close to
elevated. An additional six metro areas have their MiMi paymenttoincome
indicators over
100, indicating that the paymenttoincome
statistic for that area is above its historic
benchmark. At the state level, the District of Columbia has an elevated paymenttoincome
indicator while Hawaii and California have values above 100.”
Thirtyfour
of the 50 states plus the District of Columbia have MiMi values within range of
their benchmark averages, with the District of Columbia (101.8), North Dakota (96), Hawaii
(95.6), Montana (95.1) and Utah (94.5) ranking in the top five. Compared to the same time
last year, 22 states and the District of Columbia had MiMi values within their benchmark
ranges.
Fiftysix
of the 100 metro areas have MiMi values within range, with Denver, Colo. (99.8),
Austin, Texas (99.1), Salt Lake City, Utah (97.7), Honolulu, Hi. (97.6), and Los Angeles,
Calif. (96.9) ranking in the top five. Compared to the same time last year, 29 of the top 100
metros had MiMi values within their benchmark ranges.
The most improving states month over month were Colorado (+1.41 percent), Oregon
(+1.31 percent), Mississippi (+1.07 percent), New Jersey (+1.05 percent) and Arizona
(+0.88 percent). On a yearoveryear
basis, the most improving states were Florida (+16.72
percent), Colorado (+15.56 percent), New Jersey (+14.61 percent), Nevada (+14.21
percent), and Oregon (+14.04 percent).
The most improving metro areas month over month were Colorado Springs, Colo. (+2.09
percent), Denver, Colo. (+1.53 percent), New Orleans, La. (+1.48 percent), Ogden, Utah
(+1.19) and Stockton, Calif. (+1.12 percent). On a yearoveryear
basis, the most improving
metro areas were Orlando, Fla. (+20.39 percent), Cape Coral, Fla. (+19.25 percent),
Denver, Colo. (+19.09 percent), Tampa, Fla. (+18.93 percent) and Portland, Ore. (+18.07).
In January, 44 of the 50 states and 78 of the top 100 metros were showing an improving
threemonth
trend. The same time last year, 13 of the 50 states, and 42 of the top 100
metro areas were showing an improving threemonth
trend.
“These paymenttoincome
indicators are high despite the fact that mortgage interest rates
remain low,” says Kiefer. “Mortgage rates fell at the start of the year, helping to bolster
affordability heading into the spring season. But a lack of available inventory of forsale
homes has constrained many markets. We see that reflected in the MiMi purchase
applications indicator, which remains weak nationwide.”
For more information, visit www.freddiemac.com.
Posted in:General
Posted by Eileen Denhard on April 8th, 2016 11:50 AM

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