According to Freddie Mac's latest Primary Mortgage Market Survey for mid-August 2019, the 30-year fixed-rate mortgage rate in the U.S. averaged 3.60 percent, unchanged from last week.
Sam Khater, Freddie Mac's chief economist, says, "The sound and fury of the financial markets continue to warn of an impending recession, however, the silver lining is mortgage demand reached a three-year high this week. The decline in mortgage rates over the last month is causing a spike in refinancing activity - as homeowners currently have $2 trillion in conventional mortgage loans that are in the money - which will help support consumer balance sheets and increase household cash flow. On top of that, purchase demand is up seven percent from a year ago."
Freddie Mac News Facts:
30-year fixed-rate mortgage averaged 3.60 percent with an average 0.5 point for the week ending Aug 15, 2019, unchanged from last week. A year ago at this time, the 30-year FRM averaged 4.53 percent.
15-year FRM averaged 3.07 percent with an average 0.5 point, up from last week when it averaged 3.05 percent. A year ago at this time, the 15-year FRM averaged 4.01 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.35 percent with an average 0.3 point, down from last week when it averaged 3.36 percent. A year ago at this time, the 5-year ARM averaged 3.87 percent.
According to the Mortgage Bankers Association's newly released Mortgage Credit Availability Index (MCAI), U.S. mortgage credit availability decreased in December 2019.
The MCAI fell by 3.5 percent to 182.2 in December.
Based on research from Learnbonds.com indicates that U.S. mortgage debt is now the highest since the Great Depression in 2008. The outstanding US mortgage debt which has been growing steadily in recent years hit a record high of $15.8 trillion in Q3 2019.
Based on CoreLogic's latest Home Price Index for November 2019, U.S. home prices rose both year over year and month over month. Home prices increased nationally by 3.7% from November 2018. On a month-over-month basis, prices increased by 0.5% in November 2019.
The oldest Millennials, who will turn 40 in 2020, have lived through a turbulent decade of housing marked first by the initial recovery from the Great Recession, then the extraordinary home value growth of recent years.
According to the National Association of Realtors, existing-home sales fell in November 2019, taking a small step back after October's gains. The Northeast and Midwest both reported growth last month, while the South and West saw sales decline.
Demand for design services in November 2019 increased at a modest pace for the second month in a row. During November, both the new project inquiries and design contracts scores were positive, posting scores of 60.9 and 52.9 respectively.
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