Monthly Archives: December 2021

New home sales drop 14% | Katonah Real Estate

New single-family home sales rose in November as housing demand was supported by low interest rates and strong consumer demand, despite the ongoing building materials challenges impacting the housing industry.

The U.S. Department of Housing and Urban Development and the U.S. Census Bureau estimated sales of newly built, single-family homes in November at a 744,000 seasonally adjusted annual pace, a 12.4% gain over downwardly revised October rate of 662,000 and is 14.0% below the November 2020 estimate of 865,000.

The gains for new home sales are consistent with the NAHB/Wells Fargo HMI, which edged up to 84 in December, demonstrating that housing is a leading sector for the economy.

Sales-adjusted inventory levels are at a balanced 6.5 months’ supply in November. The count of completed, ready-to-occupy new homes is just 40,000 homes nationwide. Median sales price continues to increase in November at $416,900. This is up 18.8% compared to the November 2020 median sales price of $350,800.

Moreover, sales are increasingly coming from homes that have not started construction, with that count up 75.4% year-over-year, not seasonally adjusted (NSA). These measures point to continued gains for single-family construction ahead.

Regionally on a year-to-date basis, new home sales declined in all four regions; 1.3% in the Northeast, 4.5% in the South, 5.3% in the Midwest, and 12.5% in the West.

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eyeonhousing.org

Gov. Hochul Signs Bill Package to Combat Housing Discrimination | Bedford Hills Real Estate

New York Gov. Kathy Hochul signed a package of nine bills geared to addressing bias and discrimination in the real estate industry in New York State.

ALBANY—New York Gov. Kathy Hochul signed a legislative package on Dec. 21 totaling nine bills geared at combating housing discrimination and addressing issues raised in a Newsday expose entitled “Long Island Divided.”

The centerpiece of the legislation is the Anti-Discrimination in Housing Fund that will permit the state to conduct fair housing testing. Other initiatives included in the bills signed into law range from increasing training and raising the maximum fines for misconduct by real estate brokers and salespersons, to emphasizing that all state and local agencies that administer state housing programs have an obligation to “affirmatively further fair housing.” These new bills, spearheaded by Senate Housing Committee Chair Brian Kavanagh and Assembly Housing Committee Chair Steven Cymbrowitz, will ensure the real estate workforce is well versed in fair housing practices and that the new fund is sufficiently resourced to carry out its intended purpose, New York State officials said.

The Newsday expose published in November 2019 was the culmination of a three-year investigation that uncovered widespread evidence of unequal treatment by real estate agents on Long Island and both explicit and implicit bias that exists in the real estate industry. The expose led to State Senate hearings and some disciplinary actions taken against some of the agents identified in the series.

“For too long, the dream of owning a home has been out of reach for too many New Yorkers because of discrimination and bigotry,” said Gov. Hochul. “When intrepid investigative journalists uncovered housing discrimination in New York, we took action to end this unacceptable practice. I’m proud to sign strong new laws expanding access to fair housing and allowing more New Yorkers to achieve the American dream of owning their homes.”

In a prepared statement, the New York State Association of Realtors stated in response to the housing discrimination bills signed into law: “The New York State Association of Realtors, Inc. (NYSAR) was proud to have worked with state lawmakers over the last two years to strengthen fair housing laws in New York State. We commend Governor Hochul and the State Legislature for their actions and their willingness to work with Realtors and other industry partners toward reasonable solutions that enhance fair housing education for all real estate licensees and increase penalties for bad actors who violate the law. There is no place for illegal discrimination, whether it be in housing or elsewhere. The New York State Association of Realtors Inc. is committed to educating our members about these new laws and regulations and will promote strict compliance.”

NYSAR also noted, “Realtors have a long history of opposing illegal housing discrimination and have consistently sought constructive fair housing solutions. We look forward to continuing to work with Governor Hochul and state lawmakers on additional fair housing initiatives to the benefit of all residents of New York State.”

The following is a rundown of the new housing discrimination legislation signed into law by the governor.

Creation of the Anti-Discrimination in Housing Fund

 Legislation (S.945-B/A.6866) establishes an Anti-Discrimination in Housing Fund, a portion of which will be supported by fines collected for violations of anti-discrimination sections of the real property law. This bill increases the fine ceiling from $1,000 to $2,000 and then diverts 50% of the revenue from these fines to the Anti-Discrimination in Housing Fund. This fund will be available to the Office of the Attorney General for fair housing testing which will allocate grants to various government and non-governmental entities specializing in anti-housing discrimination.

Increasing Fines and Adding a Surcharge to Licensing Fees

Legislation (S.2133-A/A.5363) adds a surcharge to licensing and re-licensing fees for real estate brokers and salespersons to be used for statewide fair housing efforts. The surcharge, an additional $30 for brokers and an additional $10 for salespersons, will be deposited into the Anti-Discrimination in Housing Fund for fair housing testing efforts.

State Senator James Skoufis said, “Following Newsday‘s 2019 exposé on housing discrimination, my colleagues and I opened a year-long investigation into predatory practices in real estate. We held multiple joint hearings, issued 25 subpoenas to compel uncooperative Realtors and their firms to testify, and ultimately produced a wide-ranging investigative report with many legislative recommendations to tighten regulation of this often abusive industry. By signing this package of fair housing bills, Governor Hochul is sending a clear message to housing interests across New York that all homebuyers deserve to be treated with dignity and fairness.”

State and Local Agencies Have an Obligation to Fair Housing

 Legislation (S.1353-A/A.5428-A) requires all state and local agencies administering housing programs or enforcing housing laws that receive state funding to affirmatively further fair housing. Agencies must take meaningful steps to further fair housing. Pursuant to an agreement with the legislature, the Commissioner must report significant steps taken to in line with this obligation every five years, with interim reporting in year two and year four.

Increases Required Fair Housing Training for Real Estate Professionals

Legislation (S.2132-B/A.5359) increases required trainings for real estate professionals, particularly trainings related to fair housing. Trainings are required to include, but are not limited to courses on:

• The legacy of segregation, unequal treatment, and historic lack of access to housing opportunities;

• Unequal access to amenities and resources on the basis of race, disability and other protected characteristics;

• Federal, state, and local fair housing laws and

•Anti-bias training.

The bill is designed to prevent the unequal treatment of minority homebuyers by increasing overall instructional training as well as instructional training pertaining to fair housing and discrimination in the real estate industry.

Requires Implicit Bias Training for Real Estate Brokers or Salespersons

Legislation (S.538-B/S.4638-A) requires an additional two hours of training relating to implicit bias for real estate brokers and salespersons as part of their license renewal process. During investigations into the issues brought to light by “Long Island Divided,” it became apparent that many real estate professionals were unaware of the impact implicit bias could have in their industry, state officials said. The bill ensures that all real estate professionals are made aware of how harmful implicit bias can be and how to ensure they follow fair housing guidelines.

Requires Cultural Competency Training for Real Estate Brokers or Salespersons 

Legislation (S.979-A/A.844-A) requires that coursework on cultural competency be included in the curriculum for real estate broker and salesperson license qualification, and requires an additional two hours of training for real estate professionals in comprehensive cultural competency prior to renewing broker or salesperson licenses. This will help decrease discrimination in the real estate industry, and further educate real estate professionals to ensure they follow fair housing practices.

Requiring Standardized Intake Procedures for Real Estate Professionals

Legislation (S.2131-A/A.6186) requires standardized client intake procedures for real estate brokers and allows for a penalty to be imposed on any real estate broker or salesperson who fails to comply. Pursuant to an agreement with the legislature, real estate professionals must post and maintain their standardized operating procedures at their offices for inspection by the Department of State and the public. The bill allows for client intake procedures to be monitored and standardized, preventing discriminatory practices.

Requires Associate Brokers Serving as Office Managers to Supervise Other Real Estate Professionals

Legislation (S.2157-A/A.6355) requires associate real estate brokers who serve as office mangers to supervise other real estate professionals in their office. Office managers must have been active in the real estate industry two of the four years before beginning duties as office manager. Real estate brokers are responsible for maintaining and supervising their place of business, unlike associate brokers who have the same licensing but have chosen to work under the supervision of another broker. The legislation clarifies the required level of supervision and strengthens existing Department of State regulations. In addition, the legislation specifies the length of time an associate broker is required to work prior to becoming an office manager and will therefore ensure offices are appropriately supervised by experienced real estate professionals.

Creating a Telephone Line for Housing Discrimination Complaints

 Legislation (S.3437-C/A.2300-C) establishes a dedicated telephone line for housing discrimination complaints. This telephone line will be run by the Division of Human Rights and will provide assistance to those experiencing housing discrimination. This will create a more efficient process for reporting incidents of housing discrimination.

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realestateindepth.com/news/

NAR reports exisiting home sales fell 2% | Bedford Real Estate

Fueled by low mortgage interest rates and strong demand, existing home sales increased for a third straight month in November, according to the National Association of Realtors (NAR). However, supply has continued to lag due to ongoing supply-chain disruptions, keeping home price elevated and pricing out first-time and young buyers.

Total existing home sales, including single-family homes, townhomes, condominiums and co-ops, rose 1.9% to a seasonally adjusted annual rate of 6.46 million in November, the highest level since January. However, on a year-over-year basis, sales were 2.0% lower than a year ago, the fourth annual decline since August 2020.

The first-time buyer share fell to 26% in November, down from 29% in October and down from 32% a year ago. The November inventory level declined from 1.23 to 1.11 million units and is still down from 1.28 million units a year ago.

At the current sales rate, November unsold inventory sits at a 2.1-month supply, down from 2.3 month both last month and a year ago. This low supply of resale homes is good news for home construction.

Homes stayed on the market for an average of just 18 days in November, to the same as October and down from 21 days a year ago. In November, 83% of homes sold were on the market for less than a month.

The November all-cash sales share was 24% of transactions, equal to October’s share and up from 20% a year ago.

Tight supply continues to push up home prices. The November median sales price of all existing homes was $353,900, up 13.9% from a year ago, representing the 117th consecutive month of year-over-year increases, the longest-running streak on record. The median existing condominium/co-op price of $283,200 in November was up 4.4% from a year ago.

Geographically, three of four regions saw an increase in existing home sales in November, ranging from 0.7% in the Midwest to 2.9% in the South. Sales in the Northeast remained flat in November. On a year-over-year basis, however, sales declined in three major regions, ranging from 0.7% in the Midwest to 11.6% in the Northeast.

Meanwhile, the Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI increased 7.5% from 116.5 to 125.2 in October. On a year-over-year basis, sales were 1.4% lower than a year ago per the NAR data.

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eyeonhousing.org

Inflation up 6.8% | Pound Ridge Real Estate

In November, consumer prices increased by 6.8% from a year ago. It marks the largest year-over-year gain since June 1982. Supply-chain constraints and strong consumer demand related to the pandemic and the reopening of the economy have contributed to recent price increases in some sectors.

The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose by 0.8% in November on a seasonally adjusted basis, following an increase of 0.9% in October. Excluding the volatile food and energy components, the “core” CPI increased by 0.5% in November, after a 0.6% increase in October. In November, the price index for a broad set of energy sources increased by 3.5% in November, after a 4.8% increase in October. Gasoline (all type) rose by 6.1% in November, the same increase as in October. It marks its sixth consecutive monthly increase. The food index rose by 0.7% in November as the index for food at home increased by 0.8%.

Like last month, most component indexes increased in November. The indexes for apparel (+1.3%), shelter (+0.5%), airline fares (+4.7%), used cars and trucks (+2.5%), and new vehicles (+1.1%) showed sizeable monthly increases in November. The index for major appliances rose by 2.4% in November, after a 0.9% decline in October. Meanwhile, the indexes for motor vehicle insurance, recreation, and communication all declined in November.

The indexes for owners’ equivalent rent (OER) and rent of primary residence (RPR) both increased by 0.4% over the month. Monthly increases in OER and RPR have averaged 0.4% over the last three months.

During the past twelve months, on a not seasonally adjusted basis, the CPI rose by 6.8% in November, following a 6.2% increase in October. The “core” CPI increased by 4.9% over the past twelve months, following a 4.6% increase in October. The food index rose by 6.1% and the energy index rose by 33.3% over the past twelve months.

NAHB constructs a “real” rent index to indicate whether inflation in rents is faster or slower than overall inflation. It provides insight into the supply and demand conditions for rental housing. When inflation in rents is rising faster (slower) than overall inflation, the real rent index rises (declines). The real rent index is calculated by dividing the price index for rent by the core CPI (to exclude the volatile food and energy components).

The Real Rent Index decreased by 0.1% in November, after a decrease of 0.2% in October. Over the first eleven months of 2021, the monthly change of the Real Rent Index was -0.2%, on average.

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eyeonhousing.org

Home sales on Long Island dropped 16.9 percent | Bedford Corners Real Estate

Median sales prices up at least 9 percent year-over-year

November ended a five-month streak of year-over-year prices increasing by at least 10 percent

The housing market on Long Island has slowed from a year ago in terms of sales volume, but a lack of inventory is likely the culprit.

Home sales on Long Island dropped 16.9 percent year-over-year in November, according to data from OneKey MLS reported by Newsday. Home sales in Nassau County fell 19.2 percent, while Suffolk County sales decreased by 14.9 percent.ADVERTISING

As home sales dropped, so did availability of homes on the market. A 1.9-month supply of homes were for sale in Nassau last month and a 2.1-month supply of homes were available in Suffolk. The counties’ supply numbers in November 2020 were 3.3 months and 2.4 months, respectively.

Low supply could continue to hamper the market for the near future.

“We’ve had low inventory for quite a while now,” OneKey MLS CEO Jim Speer told Newsday. “I would expect it to stay at a pretty low level, hopefully not at this low a level, but I expect we wouldn’t see a great increase in the coming months.”ADVERTISEMENT

While listings are dropping and prices remain high, they aren’t soaring to the heights seen in recent months, a likely relief for homebuyers.

In Nassau, the median sale price was $655,000, a 9.3 percent increase year-over-year. But it was only an 0.8 percent, or $5,000, increase from October. November also ended a five-month streak of year-over-year prices increasing by at least 10 percent, according to Newsday, suggesting a slowing in price growth.ADVERTISEMENT

In Suffolk, the median sale price in November was $520,000, a 10.3 percent increase year-over-year, but only a 0.2 percent gain month-over-month, $1,000 in all.

The median sale prices in both counties are down from the historic highs hit during the summer, when Nassau reached $670,000, while Suffolk hit $531,000. The median pending sale in November for deals that hadn’t closed were for $650,000 and $515,000 in each county, respectively.

“I have definitely seen the market become more realistic,” Keller Williams Realty real estate agent Maria Wilbur told Newsday. “The offers coming in the last month or two have been closer to what the value of the house should be. They’re not so inflated.”

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https://therealdeal.com/tristate/2021/12/16/

Mortgage rates average 3.12% | Chappaqua Real Estate

 Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 3.12 percent.

“Mortgage rates inched up as a result of economic improvement and a shift in monetary policy guidance,” said Sam Khater, Freddie Mac’s Chief Economist. “While house price growth is slowing, prices remain high due to solid housing demand and low supply. We expect rates to continue to increase into 2022 which may leave some potential homebuyers with less room in their budgets on the sideline.”

News Facts

  • 30-year fixed-rate mortgage averaged 3.12 percent with an average 0.6 point for the week ending December 16, 2021, up from last week when it averaged 3.10 percent. A year ago at this time, the 30-year FRM averaged 2.67 percent.
  • 15-year fixed-rate mortgage averaged 2.34 percent with an average 0.7 point, down from last week when it averaged 2.38 percent. A year ago at this time, the 15-year FRM averaged 2.21 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.45 percent with an average 0.3 point, unchanged from last week. A year ago at this time, the 5-year ARM averaged 2.79 percent.

The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

Building material prices up 14% | Armonk Real Estate

The prices of goods used in residential construction ex-energy climbed 1.8% in November (not seasonally adjusted), according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. The monthly increase was driven by price increases in nearly every product category.

Building materials prices have increased 14.1% year-to-date, more than tripling the November YTD increase of the prior year (+3.9%) and well above the average YTD increase of 1.5% between 2015 and 2020. The index has climbed 2.5% over the past two months following a 1.5% decline between July and September.

The price index of services inputs to residential construction decreased 0.8% in November, continuing a four-month trend during which the index has declined 10.1%.

Wholesale and retail trade services decreased 1.3% in November which more than offset price increases in transportation and warehousing (+1.0%) and services less trade, transportation, and warehousing (+0.3%). Nonetheless, the price index of services used in residential construction (excluding labor) is 13.5% higher than it was 12 months prior and 22.3% higher and 22.3% than the January 2020 reading.

The PPI for all inputs to residential construction–which is a weighted average of goods and services, increased 0.3% in November–has climbed 17.3% over the past 12 months, and is 22.7% higher than its pre-pandemic level.

Product Detail: Goods

Softwood Lumber

The PPI for softwood lumber (seasonally adjusted) increased 6.9% in November and has gained 16.1% since September.  Once again, as was stated in last month’s PPI post, the recent trend of mill prices—which have more than doubled since late August and are up 37% over the past four weeks—suggests that the softwood lumber PPI is headed for another sizable gain in December.

The PPI of most durable goods for a given month is largely based on prices paid for goods shipped, not ordered, in the survey month. This can result in lags relative to cash market prices during periods of long lead times.

Steel Products

Steel mill products prices rose 2.4% in November, the smallest monthly increase since May 2021. The last monthly price decrease in steel mill products occurred in August 2020, and the index has climbed 151.4% in the months since–with more than 80% of that increase taking place in 2021.

Since the inception of the steel mill products PPI, it has doubled over four non-overlapping periods which have averaged 181 months in duration.  In other words, over the last 60 years it has taken roughly 15 years for the price of steel mill products to double, on average.  Given that context, the recent pace of price increases has been incredible—it took only 11 months for steel prices to double between August 2020 and July 2021.

Ready-Mix Concrete

The PPI for ready-mix concrete (RMC) gained 0.9% in November after increasing 0.1% in October.  The index for RMC has risen 8.3% since January 2020 and 6.6% YTD—the largest year-to-date increase in November since 2005.

At the regional level, prices increased in the Northeast (+2.5%%) and Midwest (+4.7%) while prices fell in the South (-0.9%) and West (-1.1%) regions.

 Gypsum Products

In November, the PPI for gypsum products declined (-0.2%) for only the second time in 2021.  Gypsum products prices have climbed 19.8% over the past 12 months and are up 18.8% in 2021—more than quadruple the largest percentage YTD increase in November since seasonally adjusted data became available in 2012.

Paint

The PPIs for exterior and interior architectural coatings (i.e., paint) increased 1.5% and 0.2%, respectively, in November. Neither index has declined since January 2021.

The YTD price increases of architectural coatings is unprecedented with exterior and interior paint prices climbing 16.7% and 10.9%, respectively, thus far in 2021.  In contrast, November YTD price increases averaged just 2.1% for exterior paint and 1.4% for interior paint from 2013 through 2020 (the most recent data available).

Paint prices began a series of large monthly increases in the wake of the winter storm that devastated Texas earlier this year as the petrochemical industry—upon which paint manufacturing is heavily reliant—is highly concentrated in the state.

Other Building Materials

The chart below shows the 12-month and year-to-date price changes of other price indices relevant to the residential construction industry.

With the recent passage of the Infrastructure Investment and Jobs Act (a.k.a. the Bipartisan Infrastructure Bill), the construction materials index is particularly salient.  This index, which has increased 29.1% year-to-date and 40.9% since January 2020, is more heavily weighted with products used in large amounts in the production of “traditional” infrastructure (e.g., roads, bridges, rail).

Product Detail: Services

Building Materials Wholesaling and Retailing

The Producer Price Index for building materials wholesaling decreased 1.4% in November and the building materials retailing PPI declined 1.6%.  The wholesale and retail services indices measure changes in the nominal gross margins for goods sold by retailers and wholesalers. Gross profit margins of retailers, in dollar terms, have declined 22.1% since reaching an all-time high in June 2021 but remain 33.4% higher than the January 2020 level.

Building materials wholesale and retail indexes which together account for roughly two-thirds of the PPI for “inputs to residential construction, services.”

Professional Services

Professional services is the third most heavily weighted category in the service inputs to residential construction PPI.  The prices of legal, architectural, and engineering services rose 0.3%, 0.3%, and 0.2%, respectively, in November. Although the year-to-date increase in prices of professional services used in residential construction are quite modest compared to that of materials, prices have increased more in 2021 than they had by November 2020; the difference is especially striking for engineering and architectural services.

Although the difference in YTD price changes for legal services is small, the percentage increases are relatively large.  This follows with a trend in recent years.  Since November 2018, the price of legal services has risen 13.2%–much higher than the three-year increase in architectural (+1.7%) and engineering services (+5.9%).

Metal Treatment Services

Prices of metal treatment services increased 0.7%, on average, in November.  The subset of these services used to calculate the services inputs to residential construction includes plating and polishing, coating and allied services, and heat treating.  Metal coating and allied services have increased the most— +14.1% (NSA)—since the start of 2021.  Metal heat treating and plating and polishing services have increased 5.4% and 2.0%, respectively, year-to-date.  The average price increase of the three services averaged 0.1% over the course of 2020.

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eyeonhousing.org

NYS building permits up 22% | North Salem Real Estate

Over the first ten months of 2021, the total number of single-family permits issued year-to-date (YTD) nationwide reached 948,321. On a year-over-year (YoY) basis, this is a 17.3% increase over the October 2020 level of 808,301.

Year-to-date ending in October, single-family permits increased in all four regions. Southern region reported the strongest increase of 19.1%, followed by Northeast (+18.5%), West (+15.6%), and Midwest (+12.4%). Multifamily permits were robust across the country in October compared to last year; West (+38.6%), Midwest (+30.3%), South (+23.8%), and Northeast (+15.5%).

Between October 2020 YTD and October 2021 YTD, 48 states and the District of Columbia saw growth in single-family permits issued. The District of Columbia recorded the highest growth rate during this time at 213.0% from 115 to 360. Mississippi Maryland reported a decline during this time. The 10 states issuing the highest number of single-family permits combined accounted for 62.2% of the total single-family permits issued.

Year-to-date, ending in October 2021, the total number of multifamily permits issued nationwide reached 490,172. This is 27.3% ahead over the October 2020 level of 385,107.

Between October 2020 YTD and October 2021 YTD, 41 states recorded growth while nine states and the District of Columbia recorded a decline in multifamily permits. New Mexico led the way with a sharp rise (180.0%) in multifamily permits from 694 to 1,943, while Connecticut had the largest decline of 51.3% from 2,700 to 1,316. The 10 states issuing the highest number of multifamily permits combined accounted for 63.2% of the multifamily permits issued.

At the local level, below are top 10 metro areas that issued the highest number of single-family permits. 



For multifamily permits, below are the top 10 local areas that issued the highest number of permits: 


 

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eyeonhousing.org

Mortgage rates average 3.11% | Mt Kisco Real Estate

 Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year fixed-rate mortgage (FRM) averaged 3.11 percent.

“Mortgage rates continue to remain stable notwithstanding volatility in the financial markets,” said Sam Khater, Freddie Mac’s Chief Economist. “The consistency of rates in the face of changes in the economy is primarily due to the evolution of the pandemic, which lingers and continues to pose uncertainty. This low mortgage rate environment offers favorable conditions for refinancing.”

News Facts

  • 30-year fixed-rate mortgage averaged 3.11 percent with an average 0.6 point for the week ending December 2, 2021, up slightly from last week when it averaged 3.10 percent. A year ago at this time, the 30-year FRM averaged 2.71 percent.
  • 15-year fixed-rate mortgage averaged 2.39 percent with an average 0.6 point, down from last week when it averaged 2.42 percent. A year ago at this time, the 15-year FRM averaged 2.26 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.49 percent with an average 0.3 point, up from last week when it averaged 2.47 percent. A year ago at this time, the 5-year ARM averaged 2.86 percent.

The PMMS is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

Case-Shiller reports 19.5% price gain | Cross River Real Estate

Home prices continued to increase across the U.S., but the pace declined slightly in September.

At this rate, mortgage rate increases could triple home price growth.
Adobe Stock

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine U.S. Census divisions, reported a 19.5% annual gain in September, down from 19.8% in the previous month.

The 10-City Composite annual increase came in at 17.8%, down from 18.6% in the previous month, while the 20-City Composite posted a 19.1% year-over-year gain, down from 19.6% in the previous month.

“If I had to choose only one word to describe September 2021’s housing price data, the word would be ‘deceleration,’” says Craig J. Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices. “Housing prices continued to show remarkable strength in September, though the pace of price increases declined slightly.”

Out of the 20 cities included in the report, Phoenix, Tampa, Florida, and Miami reported the highest year-over-year gains in September. Phoenix led the way with a 33.1% year-over-year price increase, followed by Tampa with a 27.7% increase and Miami with a 25.2% increase.

“Phoenix’s 33.1% increase led all cities for the 28th consecutive month,” continues Lazzara. “Tampa rose to second place in September, and Miami edged out DallasSan Diego, and Las Vegas for the bronze medal. Prices were strongest in the South and the Sun Belt, but every region logged double-digit gains.”

Before seasonal adjustment, the U.S. National Index posted a 1% month-over-month increase in September, while the 10-City and 20-City Composites both posted increases of 0.7% and 0.8%, respectively. After seasonal adjustment, the index posted a month-over-month increase of 1.2%, and the 10-City and 20-City Composites both posted increases of 0.8% and 1%, respectively.

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builderonline.com/data-analysis/