FreddieMac says housing market steady despite low-inventory

April 08, 2016 by NASB

housing marketIf you’re in the market for a new home but find options very limited, you’re not alone.

 

Government-sponsored agency FreddieMac released their Multi-Indicator Marked Index (MiMi) results on Wednesday. The datasuggests that although the low-availability of new homes is a problem, the overall housing market is holding steady.

 

“On a year-over-year basis, the national MiMi value has improved +7.57 percent. Since its all-time low in October 2010, the national MiMi has rebounded 40 percent,” the report said.

 

The valuation goes on to list growing markets across the country, including a jump from 22 to 34 out of 50 states that achieved favorable MiMi values, “within range of their benchmark averages.”

 

Of the major cities cited, “[56] of the 100 metro areas have MiMi values within range,” compared to 29 at the same time last year.

 

Freddie Mac Chief Economist Len Kiefer says the nation-wide MiMi purchase applications indicator took a hit due to weaker inventory. He also claims wage gains have not kept pace with house prices, despite a stronger jobs market and lower unemployment applications.

 

“These payment-to-income indicators are high despite the fact that mortgage interest rates remain low. Mortgage rates fell at the start of the year, helping to bolster affordability heading into the spring season,” Kiefer said.

 

Fortunately,reports from March of this year reflect a nationwide increase inresidential home builder applications. This may offer some relief to the currentinventory constraints, but exactly when the data will improve remains to be seen.

 

For any questions about your individual home mortgage or refinance needs, contact a NASB representative today.

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