Skip To Content

    This Week In Real Estate – Jan. 19, 2020

    This Week In Real Estate

    The New Decade Starts Strong.

    There is strong momentum to start the new decade as the purchase index increased to its highest level since October 2009, according to the Mortgage Bankers Association this week in real estate. While mortgage interest rates remain very favorable, builder confidence has reached its highest sentiment levels since July 1999 as housing starts jumped in December to their highest level in 13 years. Below are a few highlights from the second week of January that influence our business:

    Housing Starts Soar to a 13-Year High.

    Housing construction continued to improve in December as the nation’s homebuilders increased their building efforts nationwide, sending the unadjusted pace to a 13-year high. According to the Department of Housing and Urban Development and the Department of Commerce, housing starts spiked 16.9% in December to a seasonally adjusted annual rate of 1.608 million and the pace for November was revised upward. In December, single-family starts grew 11.2% from November to 1.055 million units while multifamily starts grew a whopping 32% to 536,000 units, according to the report. Although housing starts increased significantly in December, Mike Fratantoni, the Mortgage Bankers Association’s chief economist, warns the pace is likely to slow in the months ahead. “On a seasonally adjusted basis, housing starts jumped in December to their highest level in 13 years,” Fratantoni said. “Surprisingly, single-family starts increased relative to November even on an unadjusted basis – unusual at this time of year – and was driven by a rise in the South.” Full Story…

    Builder Confidence Begins Year Strong as Single-Family Growth Continues.

    Builder confidence in the market for newly-built single-family homes edged one point lower to 75 in January, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The last two monthly readings mark the highest sentiment levels since July of 1999. Low interest rates and a healthy labor market combined with a need for additional inventory is setting the stage for further home building gains in 2020. With the Federal Reserve on pause and attractive mortgage rates, the steady rise in single-family construction that began last spring will continue into 2020. Looking at the three-month moving averages for regional HMI scores, the Northeast rose one point to 62, the Midwest increased three points to 66 and the West moved one point higher to 84. The South remained unchanged at 76.  Full Story…

    Mortgage Applications Spike 30.2%.

    Mortgage applications spike 30.2% from last week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. Joel Kan, the associate vice president of economic and industry forecasting at MBA said the mortgage market has seen a strong start so far in 2020. “This week applications increased across the board, and the 30-year fixed mortgage rate hit its lowest level since September 2019,” Kan said. “Refinances increased for both conventional and government loans, as lower rates provided a larger incentive for borrowers to act. Homebuyers were active the first week of the year. Purchase activity was 8% higher than a year ago, and the purchase index increased to its highest level since October 2009.”  Full Story…

     


    Originally compiled & posted by Jason Waugh on the Berkshire Hathaway HomeServices Northwest Real Estate company blog.

    Trackback from your site.

    Mitch Darby

    I am a real estate broker, architect (both licensed in the State of Oregon), and life-long Oregonian. If you are looking to buy or sell, I can help! I have Northwest Knowledge and am proud to be associated with Berkshire Hathaway HomeServices - Real Estate's Forever Brand!

    Leave a Reply