Freddie Mac: Housing Market Continues ‘Steady’ Comeback
Freddie Mac, McLean, Va., said the U.S. housing market continued to improve in 2015, with 35 states now in the company’s “stable” housing activity measurement.
The company’s Multi-Indicator Market Index improved to 82.7, suggesting a housing market on the outer range of stable housing activity, an improvement of 0.51 percent from November to December and a three-month improvement of 1.70 percent. On a year-over-year basis, the national MiMi value improved by 7.65 percent. Since its low in October 2010, the national MiMi has rebounded by 40 percent, but remains significantly off from its high of 121.7.
The report said two additional states, Florida and Arizona, entered their outer range of stable housing activity. The MiMi purchase applications indicator improved by nine percent in 2015, its best showing since September 2013.
“One encouraging sign is that not only are purchase applications solidly up, but borrowers being current on their mortgage strongly improved in 2015 as well,” said Freddie Mac Deputy Chief Economist Len Kiefer. “What’s really anchoring this recovering housing market is the improving employment picture, which is giving more people the confidence to purchase a home, including first-time homebuyers.”
Freddie Mac said 35 states and the District of Columbia have MiMi values in a stable range, with the District of Columbia (102.5), North Dakota (96.7), Hawaii (96.2), Montana (95.6) and Utah (94) ranking in the top five. Compared to the same time last year, 20 states and the District had MiMi values in a stable range.
Most improved states month over month were Oregon (1.66%), New Jersey (1.62%), Arizona (1.39%), Florida (1.39%) and Missouri (1.25%). On a year-over-year basis, most improved states were Florida (16.59%), Oregon (15.64%), Colorado (14.09%), Washington (12.58%) and Nevada (12.54%).
Fifty-six of 100 metro areas measured have MiMi values in a stable range, with Austin, Texas (98.8), Denver (98.3), Honolulu (98.2), Salt Lake City (97.4) and Los Angeles (97.2) ranking in the top five. Compared to last year, 28 of the top 100 metros had MiMi values in a stable range.
Most improved metro areas month over month were Orlando (1.65%), Baton, Rouge, La. (1.57%), Portland, Ore. (1.52%), Palm Bay, Fla. (1.48) and Tampa (1.40%). On a year-over-year basis, most improved metros were Orlando (20.33%), Cape Coral, Fla. (19.16%), Tampa (18.51%), Portland (18.20%) and Denver (17.72%).
Freddie Mac said 45 states and 86 of the top 100 metros showed an improving three-month trend. The same time last year, 19 states and 49 metro areas were showed improvement.
