Homeownership Rate Down 0.4 Percent in Q4

According to data released by the Department of Commerce’s Census Bureau, the homeownership rate for the fourth quarter of 2010 was 66.5 percent, down from 66.9 percent in the third quarter. Homeownership peaked at 69 percent in 2004, at the height of the housing boom. Despite the drop, recent sales increases point to a possible rebound in the first quarter of 2011. Also in the report, the homeowner vacancy rate was 2.7 percent, unchanged from a year earlier and 0.2 percent higher than the previous quarter. More here and here.

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Pending Sales Up For Fifth Time in Six Months

For the fifth time in the past six months, the National Association of Realtors’ Pending Home Sales Index improved, increasing 2.0 percent in December. The index, which is based on signed contracts rather than closings, is an indicator of where existing-home sales will be in coming months. Lawrence Yun, NAR’s chief economist, said the latest pending-sales gain suggests activity is reaching a sustainable, healthy volume and he expects the trend to continue due to excellent housing affordability conditions. More here and here.

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New Home Sales Soar, Reach 8-Month High

Sales of new single-family homes rose 17.5 percent in December, according to data released by the U.S. Census Bureau and the Department of Housing and Urban Development. The surge brought sales to their highest level in eight months. The median sales price for a new house also increased, rising from $215,500 in November to $241,500 in December. At the current sales pace, the number of new homes on the market represents a 6.9-month supply, down from 8.2-months. More here and here.

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Loan Demand Falls As Rates Rise

According to The Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages rose to 4.80 percent last week, up from 4.77 percent the week before. The Refinance Index, after three consecutive weeks of increases, fell 15.3 percent and total loan application volume dropped 12.9 percent. Still, the four-week moving average for the Market Composite Index, measuring all loan application activity, was down just 1.0 percent. More here and here.

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Home Prices Down 1.6 Percent Year Over Year

The S&P/Case-Shiller Home Price Indices through November 2010, shows home prices down 1.6 percent from a year before and 1.0 percent month-over-month. Of the 20 major-metropolitan areas tracked, Washington D.C., San Diego, San Francisco, and Los Angeles were the only cities to post year-over-year price gains. Pat Newport of IHS Global Insight said, despite the decreases, there are reasons for optimism, including rising home sales numbers and the smaller declines calculated by the Federal Housing Finance Agency, which tracks the entire market rather than the 20 cities surveyed by Case-Shiller. More here.

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Distressed Property Sales, First-Time Buyer Activity Jump in December

According to a Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, distressed property sales spiked in December after dipping last fall due to foreclosure moratoriums. The Housing Pulse Distressed Property Index, which measures the share of total home sales involving distressed properties, rose to 47.2 percent from 44.5 percent in November. The survey also shows an increase in first-time homebuyer activity. First-time buyers accounted for 37.7 percent of all transactions in December, up from 34.4 percent. Thomas Popik, research director for Campbell Surveys, said the combination of increased property supply and growing homebuyer demand caused a blow-out month for home sales. More here and here.

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Building Permits Up 16.7 Percent, Starts Down

The U.S. Census Bureau and the Department of Housing and Urban Development’s new residential construction report for December shows a 16.7 percent increase in building permits for privately-owned housing units. The rise, in part due to changes to building codes in California, New York, and Pennsylvania, included a 5.5 percent jump in single-family authorizations. Housing starts, however, were down in December, falling 4.3 percent from November’s estimate. More here and here.

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Sales of Existing Homes Surge in December

Existing-home sales rose 12.3 percent in December, according to data from the National Association of Realtors. The increase was the fifth in six months and put sales at their highest level since the expiration of the homebuyer tax credit. Lawrence Yun, NAR’s chief economist, said the pattern over the past six months shows sales are on an uptrend and the market is reaching an adequate, sustainable level. Total housing inventory fell 4.2 percent at the end of December, which represents an 8.1-month supply at the current sales pace. More here and here.

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Loan Demand Up 5.0 Percent, Rates Down

According to The Mortgage Bankers Association’s Weekly Applications Survey, total loan application volume rose 5.0 percent last week, due to a 7.7 percent increase in the Refinance Index. The seasonally adjusted Purchase Index fell 1.9 percent from a week earlier. Michael Fratantoni, MBA’s vice president of research and economics, said, with mortgage rates moving somewhat lower since the beginning of the year, refinance applications have picked up. The average contract interest rate for 30-year fixed-rate mortgages fell to 4.77 percent from 4.78 percent the week before. More here and here.

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Builder Sentiment Unchanged For 3rd Consecutive Month

The National Association of Home Builders/Wells Fargo Housing Market Index shows builder confidence in the market for new, single-family homes held steady at 16 for the third-straight month in January. The index gauges builders’ perception of the housing market. A number below 50 indicates more builders view conditions as poor than good. The components gauging current sales conditions and expectations for the next six months were both unchanged from the previous month, while the index gauging traffic of prospective buyers rose one point. More here and here.

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