The Housing Market Continues to Strengthen

The Federal Housing Finance Agency (FHFA) recently released their House Price Index, and it showed that homes appreciated by 5.7% since this time last year and by 0.9% from May to June.  This report contains collected data based on single-family homes which are mortgaged with conforming limits.

Following a blockbuster 24.7% increase in July closings shown in the Existing Home Sales report, New Home Sales were up 14% in July and up 36% since this time last year.  These numbers came in much stronger than expected and again were impressive numbers.  New Home Sales measure newly signed contracts on newly built homes.   Median pricing on newly constructed homes increased by 7.2% for the year to about 330,000. Also, there were only about 299,000 homes for sale at the end of June, solidifying the fact that inventories continue to be super low.  

With these ultra-low inventories and very high levels of demand, the housing market is continuing to break records and continuing to appreciate.  Historically-low interest rates are aiding consumers with affordability, with rates acting as a counter balance to the higher home prices. The super low rates are also helping many homeowners refinance where it makes sense.

Call your Advisors Mortgage Loan Officer today to discuss the current market in more detail and to learn what you qualify for.