We’ve got some housing numbers to share with you this week and all of it points to a strong and stable housing market. The Federal Housing Finance Agency (FHFA) House Price Index was reported this week showing values increased nationally by 0.3% in September. The Year over Year is up 8.5% which is a good number for national appreciation of home prices. The Case Shiller Home Price Index for September which tracks closing prices in 20 major cities in the US reported values were up 0.7%. Home Prices are up 13.3% according to them year over year. This is the best number in 7.5 years! Robert Shiller was interviewed on CNBC and although the numbers look good they did not scare him in terms of a potential housing bubble. He explained that those surveyed were not too optimistic which alleviates any bubble concerns he may have had. He noted the rate of appreciation is slowing but this is probably a good thing as 13% appreciation is not sustainable, but there is nothing wrong with 6% appreciation which may be where housing is headed nationally.
November 15, 2013 Friday Rate Sheet and Market Commentary _ Courtesy Tony GuaraldiVP of Mortgage Lending
As we had hoped the Mortgage Bond markets bounced back this week recovering some of the losses from last Friday’s Jobs Report. The highly anticipated event for this week was the Confirmation Hearing for our new Fed President Janet Yellen which took place yesterday morning. She is perceived to be “Dovish” which in our world means likely to continue the stimulus that has been keeping interest rates low and the stock market rising. In her Q and A session at the hearing she did say as expected that the Fed would continue the bond purchases until the economy improves. She did also mention that she believes the real unemployment rate is closer to 10% rather than the number from last week’s Jobs report at 7.3%.
CLICK HERE for the November 15 Mortgage Rate Sheet.
Jeni Pfeiffer presents mortgage update courtesy Jason Smiley: The government shut down has had little impact on Mortgage Bond pricing so far however there is an impact to the loan process that may delay escrows. Prior to the mortgage crisis in 2007 many loans were done with stated income and assets with no verification of tax returns. Continue reading →