Even as we see the average mortgage rates continue their trend higher, according to Freddie Mac’s weekly survey, data continues to show the strength of the housing market. Yes, there is still re-balancing happening in housing; and yes, of course rising rates are impacting affordability and buyers’ decisions. However, people are still buying homes, selling homes, and moving. If you too want to be on the move, let’s talk and I can help you!
In fact, New Home Sales jumped nearly 29 percent in August. Sales increased in all four regions of the U.S. with sales in the Northeast leading. The median sales price of all new homes sold was $436,800, up 8 percent over last year.
Both of the leading reports on home price appreciation – CoreLogic’s Case-Shiller Index and FHFA House Price Index – reported that home prices are appreciating at a slower pace than they have over the last couple of years. The FHFA Index reported prices dropping 0.6 percent. And yes, they are still 13.9 percent higher than last year.
The Case-Shiller numbers reported a price gain for the year of 15.8 percent, down from 18.1 percent as reported last month. Interestingly Tampa, Miami, and Dallas had the highest gains in appreciation.
Analysts now believe that the re-balancing of the real estate market could swing closer to a buyers market by the end of the year if the sales and price trends continue as they have been. Time will tell!
As for the remainder of this week, we’ve got pending home sales numbers set for release as well as the latest GDP (gross domestic product) numbers and the Fed’s favorite inflation indicator. All of these could have a large impact on markets and mortgage rates.
Pending home sales, which have fallen in all but one month this year, are expected to decline 0.8 percent in August, which would compare with July’s 1.0 percent fall.
The third estimate of second-quarter GDP, at a minus 0.6 percent consensus, is expected to show no change from the second estimate.
Friday’s inflation report is expected to show monthly gains of 0.2 percent overall but a heated 0.5 percent for the core rate excluding food and energy, for annual rates of 6.1 and 4.8 percent (versus July’s 6.3 and 4.6 percent).
I’ll keep an eye on all of it and report back next week!
