New Home Sales Tumble In January

Sales of new single-family homes fell 12.6 percent in January from December’s rate, according to estimates from the U.S. Census Bureau and the Department of Housing and Urban Development. New home sales surged 17.5 percent in December, in part because of an expiring state tax credit in California. Sales in the west fell 36.5 percent in January after rising 62.5 percent the month before. The median sales price for a new house was $230,600; the average sales price was $260,300. There was a 7.9-month supply of new homes for sale at the end of January. More here and here.

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Sales of Existing Homes Reach 8-Month High

Despite expectations that they would fall, existing-home sales rose 2.7 percent in January, the third consecutive monthly gain and the first time in seven months that sales activity was higher than the year before. According to data from The National Association of Realtors, sales increased 5.3 percent from January 2010. Lawrence Yun, NAR’s chief economist, said the improvement is good and is consistent with improvements in the overall economy and the jobs market. Because of an increase in sales of distressed homes, the national median existing-home price was down 3.7 percent from last year. Total housing inventory also fell, dropping 5.1 percent, which is the lowest level since December 2009. More here and here.

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Mortgage Demand Jumps 13.2 Percent As Rates Fall

According to The Mortgage Bankers Association’s Weekly Applications Survey, the Market Composite Index, which measures total mortgage loan application volume, was up 13.2 percent last week from the week before. The Refinance Index increased 17.8 percent and the Purchase Index rose 5.1 percent. Michael Fratantoni, MBA’s vice president of research and economics, said application activity was up due to a drop in interest rates. The average contract interest rate for 30-year fixed-rate mortgages fell to 5.0 percent from 5.12 percent a week earlier. More here.

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Home Prices End 2010 Down 2.4 Percent

The S&P/Case-Shiller Composite 20-City Home Price Index shows a 2.4 percent drop in home prices at the end of 2010 compared to 2009. December prices were down 1.0 percent from the month before. David Blitzer, chairman of the index committee at Standard & Poor’s, said, unlike the period between 2006 and 2009 when all cities saw prices move together, there are differing stories around the country, noting price gains in California and the Northeast. More here and here.

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Mortgage Delinquencies Fall to Pre-Recession Levels

The Mortgage Bankers Association’s National Delinquency Survey shows the delinquency rate for U.S. mortgages fell to 8.22 percent in the fourth quarter, down 91 basis points from the previous quarter and 125 basis points from one year ago. Jay Brinkmann, MBA’s chief economist, said total delinquencies are at their lowest level since the end of 2008 and loans one payment past due are at the lowest level since 2007. Brinkmann says, though delinquency and foreclosure rates are still above historical norms, the economy has clearly turned a corner and he expects the delinquency picture to continue to improve during 2011. More here and here.

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Builder Confidence Unchanged for Fourth-Straight Month

Builder confidence in the market for newly built, single-family homes was unchanged for the fourth-consecutive month, according to the National Association of Home Builders/Wells Fargo Housing Market Index. But, though the index held steady, components gauging current sales conditions and sales expectations for the next six months both rose slightly. NAHB chairman Bob Nielsen said builders are beginning to see more interest from potential buyers but continue to face a challenging market. More here and here.

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Housing Starts Surge to Four-Month High In January

The U.S. Census Bureau and the Department of Housing and Urban Development’s new residential construction statistics for January show privately-owned housing starts up 14.6 percent from December’s estimates. The increase, which exceeded analysts’ expectations, was largely due to gains in multifamily construction. Single-family housing starts were flat but, according to National Association of Home Builders’ chief economist David Crowe, it’s encouraging that the category didn’t decline due to severe winter weather in much of the country. After a 16.7 percent surge in December, building permits fell 10.4 percent in January. More here and here.

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Mortgage Rates, Application Volume Fall

According to The Mortgage Bankers Association’s Weekly Mortgage Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages fell to 5.12 percent from 5.13 percent the week before. With rates remaining above 5 percent, refinance and purchase activity were both down. The Refinance Index dropped 11.4 percent from the previous week and the Purchase Index decreased 5.9 percent. More here and here.

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Jobs Recovery, Housing Affordability Continue in 2011

Freddie Mac’s February 2011 Economic Outlook Report says the labor market will continue to improve this year, though the pace of the jobs recovery will be slow. The report, released by the office of chief economist Frank Nothaft, says housing will be supported by record high homebuyer affordability and, despite expected increases, mortgage rates will remain low by historical standards and do nothing to dampen the opportunity for buyers. Last month’s report estimated a 10 percent increase in home sales this year. More here and here.

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Signs of Sales Recovery, Price Improvement in Q4

Total existing-home sales surged 15.4 percent in the fourth quarter of 2010 and prices were up 0.2 percent year-over-year, according to The National Association of Realtors. Sales rose to an annual rate of 4.80 million in the fourth quarter, from 4.16 million in the third quarter, while home prices strengthened in 78 of 152 metropolitan statistical areas. Lawrence Yun, NAR’s chief economist, said home sales clearly recovered in the latter part of 2010, which helps to absorb excess inventory and relieve pressure on prices. The national median single-family existing-home price was $170,600, up from $170,300 in the fourth quarter of 2009. More here and here.

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