Mortgage Rates moved mostly sideways this week as the price of Mortgaged Backed Securities continued to oscillate in the range between 100.50 and 101.0 – a trend we have seen since late October. Rates are down approximately 0.5% from this time last year.
Rents – The Core Logic Rental Index rose 2% year over year in September which is a moderation from 2.4% in the previous report. There is a disconnect between this report and the PCE index which is showing that shelter costs are up 5.1% year over year. Hopefully these two figures get on track, so we get better inflation numbers.
Home Sales – Existing home sales which measures closings on existing homes (not new construction) rose 3.4% in October to an annualized pace of 3.96M. Sales are up 2.9% year over year which is the first annual increase in 3 years. While the increase is nice, we are still well below historic norms of closer to 5M units. Homes are averaging 29 days on the market with the median price at $407,200 (a 4% year over year increase). First-time homebuyers accounted for 27% of sales, cash buyers 27%, and investors made up 17%.
Mortgage Applications to purchase homes rose 2% last week and are up 1% year over year. Refinances rose 2% and are up 43% year over year.