While interest rates did go up one basis point this week, they’re still holding relatively steady and are at 3.65% with .7% in fees and points for a thirty-year fixed rate mortgage.
In the latest Mortgage Bankers Association weekly survey, mortgage applications increased 30.2% from one week earlier on a seasonally adjusted basis. It was a strong start to the year for the mortgage industry. In fact, it was 8% higher than the same time a year ago. Refinances were also way up by 43%.
National Market News
The National Association of Home Builders released the Wells Fargo Housing Market Index yesterday. This index measures builder sentiment of current single-family sales conditions and expectations for the next six months as “good,” “fair,” or “poor.” A number over 50 means more builders view conditions as good. This month’s index is at 75, which is one point lower than last month. However, these last two months are the highest sentiment levels since July 1999.
Other metrics from this index are:
What’s fueling this positive wave of the industry? It’s interest rates, the steady rise in single-family construction, a healthy labor market, and the need for additional inventory.
Local Market News
There are a few places that ended the year with less than one month of inventory available. The availability is tight in:
For the next year we will keep hearing about inventory shortages and a lack of affordable housing. So if you have a home to sell that’s at a more affordable price, you’ll be in a great position to sell this year.
If you like hearing these stats and want more detailed data on your neighborhood, head over to CrestEdgeRealEstate.com/neighborhoods. For any questions or feedback on this podcast, you can contact us on our website.
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Mortgage rates hit a 13-week low and rates are now at 3.64% with .7% in fees and points. These low rates and a strong labor market should increase homebuyer demand.
Mortgage applications decreased 1.5% from two weeks earlier. It’ll be interesting to see how that number changes if these great interest rates and job numbers continue come the spring selling season.
Last week the Federal Reserve Bank of Dallas released their monthly Economic Indicators report. The report covers November’s data.
From January 2019 to November 2019, the job growth rate for Dallas was 2.2% annually and the rate for Fort Worth was 2.8%.
The unemployment rate is holding steady at 3.2% and is below the state and national rates. What’s really impressive is how it’s hovering around the lowest rate it has been since the last ten years.
Single-family construction permits fell a little in October and November after a strong summer. There were 4% fewer permits issued year-to-date in November 2019 than the same time in 2018.
Home-price appreciation rose 1.3% in the third quarter and year-over-year were up 3.8% in Dallas and 5.9% in Fort Worth. State-wide and nationally, prices increased 4.9%.
Home inventories are still tight and still leaning on the side of a seller’s market. For November we were at 3.1 months of inventory. If you have a home to sell that’s under $200,000, that’s the tightest supply of inventory at only 1.6 months of supply. If you’re selling a home from $200,000 up to $300,000, the inventory is still tight at only 2 months of supply.
The year is off to a good start with numbers and it’s looking positive to be a seller and a buyer.
Jennifer Shannon is a Texas real estate agent and broker, licensed since 2006.