Home prices hit another record high in September as stock shortages spurred competition for well-priced homes.
Year-over-year, prices rose 3.8%, up from 2.5% in August, according to the S&P CoreLogic Case-Shiller National Home Price NSA Index.
Prices were up 0.3% month-over-month before seasonal adjustment and 0.7% after. This is the eight straight month of increases.
Prices were up month-over-month in 15 of 20 cities, and both the 10- and 20-city composites analyzed saw prices exceed both their year-ago and January levels.
The National Composite surpassed its previous record high with this data, and ten individual cities hit record-breaking prices.
“On a year-to-date basis, the National Composite has risen 6.1%, which is well above the median full calendar year increase in…
Housing starts surged unexpectedly in October, suggesting some relief for homebuyers grappling with tight inventory.
Housing starts were up 1.9% last month to a 1.37 million annualized rate, their highest point in three months, according to data from the U.S. Census Bureau.
Single-family starts rose a modest 0.2%, adding to a 3.2% month-over-month increase in September, though they remain down 10.6% from the start of 2023. Multifamily starts saw a 6.3% boost to an annualized 402,000 pace.
Permits also increased by 1.1% to 1.49 million, a boon after slipping the month prior. Permits indicate how many homes will be built in the coming months.
Single-family permits rose 0.5% to 968,000, their highest level since May 2022, while multifamily permits jumped…
Average mortgage rates jumped another 10 bps last week, edging closer to 8%.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.79%, up from 7.63%. A year ago at this time, the 30-year FRM averaged 7.08%.
The 15-year fixed-rate rose to 7.03% from 6.92%. A year ago, it averaged 6.36%.
“For the seventh week in a row, mortgage rates continued to climb toward eight percent, resulting in the longest consecutive rise since the Spring of 2022,” said Sam Khater, Freddie Mac’s Chief Economist.
“Rates have risen two full percentage points in 2023 alone and as we head into Halloween, the impacts may scare potential homebuyers. Purchase activity has slowed to a virtual standstill, affordability remains a…
As high rates keep sellers locked in their current homes, new homes are making up an increasing share of the market.
Newly built homes made up almost a third of all single-family homes on the market in Q2 2023 (31.4%), according to a new report from Redfin.
This is up 30.3% YOY and almost double the share from Q2 2019 (17%). It’s a new record for any second quarter in Redfin’s data, though not the highest share ever.
In fact, it’s down from Q1 2023’s share of 33.6%, though Redfin notes the decline follows a normal seasonal trend of new home shares peaking in the winter.
Though builders have slowed home construction, no longer producing the same inventory they did…
Builder confidence has dipped, breaking a seven-month streak of increases, as high rates and shelter inflation put a dent in new home demand.
The National Association of Home Builders and Wells Fargo Housing Market Index, which tracks confidence in the new single-family home market, decreased by 6 points to a reading of 50.
NAHB said that construction costs, lack of buildable lots, and ongoing shortages forced the reading down this month.
“But while this latest confidence reading is a reminder that housing affordability is an ongoing challenge, demand for new construction continues to be supported by a lack of resale inventory, as many homeowners elect to stay put because they are locked in at a low mortgage rate,” NAHB Chairman…
Mortgage applications increased last week, with purchase applications reaching their highest level of activity since May.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 3%.
Adjusted purchase applications rose by 3%, though the unadjusted index was down 8% from the week before and 21% lower YOY.
Refinances rose, up 3% from the week prior. They remain 32% lower than the same time last year, comprising only 27.2% of total applications. In the past decade, refis averaged 58% of total activity.
The average interest rate for 30-year fixed loans rose from 6.73% to 6.75%, breaking a three-week streak of declines.
MBA VP and Deputy Chief Economist…
New home sales jumped in May as homebuilders continue to experience a boom, according to new data from the U.S. Census Bureau and the Department of Housing and Urban Development.
Sales rose by 12.2% to a seasonally adjusted annual rate of 763,000, compared to April’s 680,000. They were up 20% from the same time last year, which saw an annualized rate of just 636,000.
The seasonally‐adjusted estimate of new houses for sale was 428,000, down from last month and representing a supply of 6.7 months at the current sales rate.
The median sales price for a new home was $416,300, while the average sales price was $487,300.
Homebuilders are working overtime to accommodate surging demand. Americans still want to buy…
Housing construction rebounded by more than expected in February, led by a surge in multifamily projects.
New U.S. home construction rose for the first time in six months, according to data from the U.S. Census Bureau. Residential starts increased by 9.8% from January to an annualized rate of 1.45 million. This greatly exceeds estimates from economists surveyed by Bloomberg, who expected a pace of 1.31 million.
Permits for new homes also increased, up by 13.8% to a rate of 1.52 million. Permits offer an indication of how many homes will be built in the coming months.
Both multifamily and single-family construction saw gains, though multifamily had the best showing with a 24% increase, the most in almost two years. Rents…
Housing construction slid again in December to its lowest point since July, but an increase in single-family starts may signal improvement to come. Residential starts fell 1.4% from November to an annualized rate of 1.38 million, down 21.8% from the same time last year, according to data from the U.S. Census Bureau. This is the fourth consecutive decline for these data. It was driven largely by a dip in multifamily construction, which is volatile month to month. The picture for all of 2022 was fairly bleak. In the entire year, only 1 million homes were started, down 10.6% from 2021 and the largest drop since 2009. Permits for new homes fell 1.6% to a rate of 1.33 million. Single-family permits…
Housing construction slid again in November as inflationary pressure and high rates kept demand down. Residential starts fell 0.5% from October to an annualized rate of 1.43 million, down 16.4% from the same time last year, according to data from the U.S. Census Bureau. This is the third consecutive decline for these data. Economists surveyed by the Wall Street Journal predicted starts would fall to 1.4 million from October’s initial estimate of 1.43 million. Single-family starts dropped 4.1% month-over-month to an annualized rate of 828,000. This is their lowest level since May 2020. Permits for new homes fell 11.2% to a rate of 1.34 million. Single-family permits tanked by 7.1% to their slowest pace since 2020. Permits offer an indication…
