Real Estate - Economic update for week ending September 20th, 2013 All eyes were on the Fed this week as they announced they would stay the course at the latest policy meeting and not begin tapering the QE3 bond and mortgage buying program. The Freddie Mac Weekly Primary Mortgage Market Survey showed the 30-year fixed rate dropped down to 4.50% from last week’s 4.57%. The 15-year rate also fell to 3.54% from last week’s 3.59% . A year ago this week according to the survey, the 30-year rate was at 3.49% while the 15-year rate was at 2.77%. We are seeing 30 year fixed rates around 4.5% for conforming, 4.75% for high balance conforming and 4.875 for jumbo. 15 year rates are about 3.5% conforming, 3.875% high balance conforming and 4% for jumbo loans. This week the California Association of Realtors (C.A.R.) released information showing that statewide, California’s sales were down slightly. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 434,700 units in August, down 2% from a revised 443,500 in July and down 1.9% from a revised 443,030 in August 2012. Home prices rose in August. The statewide median sold price of an existing, single-family detached home was up 1.7 percent from July’s median price of $433,910 to reach $441,330 in August, the highest price recorded since December 2007 and 28.4% higher than the revised $343,800 recorded in August 2012. For the Los Angles Metro area the median sold price in August was $394,550 down -.1% from July’s $395,120 but up 25.3% from last Augusts $314,870 median. Inventory remains far below average at 3.2 months. Looking at the national picture, this week the National Association of Realtors reported that existing home sales hit their highest level in 6 ½ years in August as fears over rising interest rates pushed many to close deals. Existing home sales were up 1.7% to a seasonally adjusted rate of 5.48 million in August up from 5.39 million in July. They were up 13.2% annually. Nationwide inventory of existing homes rose .4% to 2.5 million homes, representing a 4.9 month supply, still below normal levels. The core Consumer Price Index rose .1% last month after a .2% rise in July boosted mainly by price increases in medical care and rents. Data shows prices have risen 1.5% year over year compared to 2% in July with the slow pace of the recovery keeping inflation in check. The Commerce Department reported that housing starts on single family homes are on the rise. Overall housing starts were up .9% but single-family home starts were up 7% from the July number to an annual rate of 628,000 units, a 16.9% increase from July 2012. All in all economic news is good. The looming risk of a default by the United States while Congress fights out the debt limit increase should keep interest rates in check until a deal is made.
Posted on: Sat, 21 Sep 2013 19:48:48 +0000
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