Average Mortgage Rate Falls To 4.21 Percent

According to the Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell to 4.21 percent last week from 4.23 percent the week before. The average 30-year rate on jumbo loans also fell, dropping to 4.55 percent. Despite decreasing rates, the Market Composite Index, which measures total loan application volume, was down 11.7 percent last week, after an adjustment to account for the Thanksgiving holiday. Still, the seasonally adjusted Purchase Index remained steady, declining just 0.8 percent from the previous week. More here.

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Home Values Hold Steady In Third Quarter

The S&P/Case-Shiller Home Price Indices shows the U.S. National Home Price Index up just 0.1 percent from the second quarter. But, though the national index registered a drop of 3.9 percent from the third quarter of last year, the rate of decline improved over the year-over-year decrease seen in the second quarter. In September, the annual rate of change improved from August in 14 of the 20 cities covered by the index. David Blitzer, chairman of the index committee at S&P Indices, said the plunging collapse of prices seen in 2007-2009 seems to be over, though a stronger economy would be needed for any sustained recovery. The Federal Housing Finance Agency also found prices relatively flat in the third quarter. Their index recorded a 0.2 percent increase. Andrew Leventis, FHFA’s principal economist, said most regions of the country saw relatively stable home values during the third quarter. More here and here.

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New Home Sales Rise Again In October

After rising 5.7 percent in September, new home sales increased again in October. According to data released by the U.S. Census Bureau and the Department of Housing and Urban Development, sales of new single-family homes rose 1.3 percent above September’s rate and are 8.9 percent above last October’s estimate. The median sales price of new houses sold during the month was $212,300; the average sales price was $242,300. The seasonally adjusted estimate of new houses for sale at the end of the month was 162,000, which represents a supply of 6.3 months at the current sales pace. More here.

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Demographics, Falling Vacancies Will Accelerate Housing’s Recovery

A combination of demographics and vacancies provides hope for the housing market’s future, despite the relatively slow pace of the recovery. According to John Burns Real Estate Consulting, housing starts, sales, and prices have been fairly flat in recent months but there are indications that the recovery will accelerate due to falling inventory and the 5.9 million Americans between the ages of 25 and 34 that are currently living with their parents. Burns forecasts 1.43 million in household growth and 1.2 million in new construction as pent-up demand leads more consumers back to the market. That demand will also lead to continued declines in the number of vacant homes. The vacancy rate has been falling since peaking at 3.2 million in 2009. More here.

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Mortgage Rates Unchanged, Purchase Demand Up

According to the Mortgage Bankers Association’s Weekly Applications Survey, the seasonally adjusted Purchase Index rose 8.2 percent last week to its highest level since August 12. Despite the gain in purchase demand, the Market Composite Index, which measures total mortgage loan application volume, was down 1.2 percent. Michael Fratantoni, MBA’s vice president of research and economics, said overall refinance activity declined, though there was an increase in applications for government loan programs. The average contract interest rate on 30-year fixed-rate mortgages was unchanged at 4.23 percent. The average 30-year rate for jumbo loans increased to 4.59 percent. More here.

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Existing Home Sales Gain 1.4 Percent In October

Existing-home sales, which include previously owned single-family houses, townhomes, condominiums, and co-ops, increased 1.4 percent in October, according to the National Association of Realtors. The gains put sales 13.5 percent above last year’s levels. Lawrence Yun, NAR’s chief economist, said the market has been steady but sales have been stuck in a narrow range despite several improving factors including job creation, rising rent, and high affordability conditions. The national median existing-home price was $162,500. Housing inventory continued trending downward, falling another 2.2 percent at the end of October. More here.

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Delinquency Rate Falls To Lowest Level Since 2008

The seasonally adjusted delinquency rate, which includes all loans that are at least one payment past due, fell to 7.99 percent in the third quarter, according to the Mortgage Bankers Association’s National Delinquency Survey. The drop brought the delinquency rate to its lowest level since the fourth quarter of 2008. Michael Fratantoni, MBA’s vice president of research and economics, said the delinquency picture changed for the better in the third quarter but noted a slight increase in foreclosure starts, driven primarily by the progression of delinquent loans through the foreclosure process in the states hardest hit by the foreclosure crisis. In fact, the five states with the highest number of loans in foreclosure represent 52 percent of the national total. Outside of those hardest hit states, foreclosure starts were relatively flat during the third quarter. More here and here.

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Building Permits Rebound, Up 10.9 Percent In October

Despite a turn downward in September, permits to build privately-owned housing units rose 10.9 percent in October to a seasonally adjusted annual rate of 653,000, 17.7 percent above last year’s estimate. Permits to build single-family homes gained 5.1 percent month-over-month. Housing starts remained relatively flat, dropping 0.3 percent, though they are still 16.5 percent above October 2010. But, despite the slight dip in overall starts, single-family housing starts improved 3.9 percent above the revised September figure. New residential construction is now at its highest level since March 2010. More here.

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Builder Confidence Climbs For Second Straight Month

The National Association of Home Builders/Wells Fargo Housing Market Index measures builder confidence in the market for newly built, single-family homes. In November, the index rose three points to 20, the second consecutive month of gains. David Crowe, NAHB’s chief economist, said the improvement is evidence that well-qualified buyers are being tempted back into the market by favorable mortgage rates and prices. Crowe believes there will be further, gradual gains in builder sentiment heading into 2012. Each of the three individual components, those measuring currents sales conditions, future expectations, and traffic of prospective buyers, were up from October. More here.

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Mortgage Rates Rise To 4.23 Percent

According to The Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages increased to 4.23 percent last week from 4.22 percent the week before. The 30-year rate on jumbo loans fell to 4.56 percent. The four-week moving average for the seasonally adjusted Market Index, which measures total loan application volume, is up 1.02 percent, despite a 10.0 percent drop last week. In October, 50.6 percent of refinance applications were for 30-year loans and 28.8 percent were 15-year fixed loans. Among purchase applications, 85.5 percent were for 30-year loans. More here.

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