Six weeks into 2016 and the stock market is struggling to find stability. The question This Week in Real Estate is how much further can interest rates drop? Below are a few highlights from the second week of February that influence our business:
* Mortgage Rates Drop Six Weeks Straight. The downward trend in mortgage rates continued for the sixth consecutive week amid ongoing market volatility, the latest results of Freddie Mac’s Primary Mortgage Market Survey found. “In a falling rate environment, mortgage rates often adjust more slowly than capital market rates, and the early-2016 flight-to-quality has run true to form,” said Sean Becketti, chief economist with Freddie Mac. “The 30-year mortgage rate has dropped 36 basis points since the start of the year, while the yield on the 10-year treasury has dropped 59 basis points over the same period. If treasury yields were to hold at current levels, mortgage rates might well sink a little further before stabilizing,” he said. Full Story… http://www.housingwire.com/articles/36260-freddie-mac-mortgage-rates-drop-six-weeks-straight?eid=322520585&bid=1308495
* Foreclosures Fall to Lowest Level Since 2006. In another sign that the recovery from the housing crisis is ongoing rather than stalled out, the total number of completed foreclosures in 2015 was the lowest number of completed foreclosures in any year since 2006, a new report from CoreLogic shows. The numbers hit a 8-year low just last month. The number of completed foreclosures fell more than 20% from 2014 to 2015, making it the best year since before the housing crisis began. The number of completed foreclosures in December 2015 was down 72.8% from the peak of 117,722 in September 2010. As of December 2015, the national foreclosure inventory included approximately 433,000, or 1.1%, of all homes with a mortgage compared with 568,000 homes, or 1.5%, in December 2014. The December 2015 foreclosure inventory rate is the lowest for any month since November 2007. The December 2015 serious delinquency rate (90 days or more past due) was the lowest in eight years, falling to the lowest level since November 2007. Full Story… http://www.housingwire.com/articles/36238-corelogic-foreclosures-fall-to-lowest-level-since-2006?eid=322520585&bid=1306038
* Home-Price Growth Sped Up Last Year. Home-price growth accelerated late last year, according to a report released Wednesday by the National Association of Realtors. The national median existing single-family home price grew nearly 7% in the fourth quarter, compared with the same time last year. Prices increased year-over-year in 81% of markets measured by NAR. But 30 metro areas saw double-digit increases. Western and sunbelt markets continued to see some of the biggest gains. Full Story… http://blogs.wsj.com/economics/2016/02/10/home-price-growth-sped-up-last-year-realtors-say/
Have a productive week!