FHFA: Little Movement in Mortgage Interest Rates in December

FHFA: Little Movement in Mortgage Interest Rates in December

Nationally, interest rates on conventional purchase-money mortgages were nearly flat from November to December, according to several indices of new mortgage contracts.

The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 4.83 percent for loans closed in late December, down 3 basis points from 4.86 percent in November.

The average interest rate on all mortgage loans was 4.82 percent, unchanged from November.

The average interest rate on conventional, 30-year, fixed-rate mortgages of $453,100 or less was 4.98 percent, down 1 basis point from 4.99 in November.

The effective interest rate on all mortgage loans was 4.92 percent in December, up 1 basis point from 4.91 in November. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.

The average loan amount for all loans was $318,600 in December, unchanged from November.

FHFA: House Prices Continue to Rise

FHFA: House Prices Continue to Rise

U.S. house prices rose in November, up 0.4 percent from the previous month, according to the Federal Housing Finance Agency (FHFA) seasonally adjusted monthly House Price Index (HPI). The previously reported 0.3 percent increase in October was revised to reflect a 0.4 percent increase.

The FHFA monthly HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. From November 2017 to November 2018, house prices were up 5.8 percent.

For the nine census divisions, seasonally adjusted monthly price changes from October 2018 to November 2018 ranged from -0.8 percent in the Pacific division to +1.1 percent in the South Atlantic division, although the South Atlantic division saw a -0.3 percent drop from September to October.  South Carolina is in the South Atlantic division.

The 12-month changes were all positive, ranging from +4.5 percent in the West South Central division to +7.4 percent in the Mountain division.

Did you know? Greenville is at the center of more than 10% of the housing production in the U.S.

Did you know? Greenville is at the center of more than 10% of the housing production in the U.S.

Within 150 miles of Greenville:

  • More than 100,000 residential single-family permits were issued, more than 10 percent of all housing starts in the U.S.
  • More than 38 million people called that area home
  • Construction accounted for 671,000 jobs

Have a look at this list of cities in the area and the housing production in each market:

  • Atlanta, GA: 33,832
  • Charlotte, NC: 14,818
  • Raleigh, NC: 13,362
  • Myrtle Beach, SC: 8,587
  • Charleston, SC: 7,267
  • Greenville, SC: 6,747
  • Greensboro, NC: 4,658
  • Savannah/Hilton Head: 4,400
  • Columbia, SC: 3,838
  • Knoxville, TN: 3,789
  • Augusta, GA, 3,300
  • Asheville, NC: 2,593
  • Chattanooga, TN: 2,243
Housing affordability rises in Greenville, falls nationally

Housing affordability rises in Greenville, falls nationally

A modest increase in interest rates and home prices kept housing affordability at a 10-year low in the third quarter of 2018, according to the NAHB/Wells Fargo Housing Opportunity Index (HOI) released last month.

In all, 56.4% of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $71,900. This is down from the 57.1% of homes sold in the second quarter that were affordable to median-income earners and the lowest reading since mid-2008.

The national median home price edged up from $265,000 in the second quarter of 2018 to $268,000 in the third quarter. This is the highest quarterly median price in the history of the HOI series. At the same time, average mortgage rates rose by a nominal 5 basis points in the third quarter to 4.72 percent from 4.67 percent in the second quarter.

“Continuing home price appreciation and rising interest rates coupled with persistent labor shortages are contributing to housing affordability concerns,” said NAHB Chairman Randy Noel. “Builders are increasingly focusing on managing home construction costs so that they do not outpace wage gains.”

“Ongoing job and economic growth provide a solid backdrop for housing demand amid recent declines in affordability,” said NAHB Chief Economist Robert Dietz. “However, housing affordability will need to stabilize to keep forward momentum from diminishing as we move into the new year.”

Greater Greenville

The index for Greater Greenville rose to 71.7 in the third quarter from 69.3 in the second quarter, but fell from 74.7 in the same quarter last year.  House prices fell slightly while income remained the same.  Greater Greenville ranks as the 96th most affordable housing market in the country.

The Rest of the Nation

For the second straight quarter, Syracuse, N.Y., remained as the nation’s most affordable major housing market. There, 88.2% of all new and existing homes sold in the third quarter were affordable to families earning the area’s median income of $74,100. Meanwhile, Kokomo, Ind. was rated the nation’s most affordable smaller market, with 93.2% of homes sold in the third quarter being affordable to families earning the median income of $64,100.

Rounding out the top five affordable major housing markets in respective order were Scranton-Wilkes Barre-Hazleton, Pa.; Indianapolis-Carmel-Anderson, Ind.; Youngstown-Warren-Boardman, Ohio-Pa.; and Harrisburg-Carlisle, Pa.

Smaller markets joining Kokomo at the top of the list included Elmira, N.Y.; Fairbanks, Alaska; Cumberland, Md.-W.Va.; and Springfield, Ohio.

San Francisco, for the fourth straight quarter, was the nation’s least affordable major market. There, just 6.4% of the homes sold in the third quarter of 2018 were affordable to families earning the area’s median income of $116,400.

Other major metros at the bottom of the affordability chart were located in California. In descending order, they included Los Angeles,-Long Beach-Glendale; Anaheim-Santa Ana-Irvine; San Jose-Sunnyvale-Santa Clara; and San Diego-Carlsbad.

All five least affordable small housing markets were also in the Golden State. At the very bottom of the affordability chart was Santa Cruz-Watsonville, where 6.5% of all new and existing homes sold were affordable to families earning the area’s median income of $81,400.

In descending order, other small markets at the lowest end of the affordability scale included Salinas; Napa; San Luis Obispo-Paso Robles-Arroyo Grande; and San Rafael.

FHFA: House Prices Continue to Rise

FHFA: Index shows mortgage rates increased in November

Nationally, interest rates on conventional purchase-money mortgages increased from October to November, according to several indices of new mortgage contracts.

The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 4.86 percent for loans closed in late November, up 11 basis points from 4.75 percent in October.

The average interest rate on all mortgage loans was 4.82 percent, up 10 basis points from 4.72 in October.

The average interest rate on conventional, 30-year, fixed-rate mortgages of $453,100 or less was 4.99 percent, up 12 basis points from 4.87 in October.

The effective interest rate on all mortgage loans was 4.91 percent in November, up 10 basis points from 4.81 in October. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.

The average loan amount for all loans was $318,600 in November, up $3,500 from $315,100 in October.

FHFA: House Prices Continue to Rise

FHFA: House Price Index up 0.3 percent in October

U.S. house prices continue to trend up.

According to the Federal Housing Finance Agency (FHFA), U.S. house prices rose in October, up 0.3 percent from the previous month, according to FHFA’s seasonally adjusted monthly House Price Index (HPI).  The previously reported 0.2 percent increase in September remained unchanged.

The FHFA monthly HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.  From October 2017 to October 2018, house prices were up 5.7 percent.

For the nine census divisions, seasonally adjusted monthly price changes from September 2018 to October 2018 ranged from -0.6 percent in the South Atlantic division (where Greenville is located) to +1.4 percent in the Pacific division.  The 12-month changes were all positive, ranging from +3.3 percent in the Middle Atlantic division to +8.5 percent in the Mountain division.

Monthly index values and appreciation rate estimates for recent periods are provided in the tables and graphs on the following pages.  Downloadable data and HPI release dates for 2019 are available on the HPI page.