Builder Confidence Unchanged for Fourth-Straight Month

Builder confidence in the market for newly built, single-family homes was unchanged for the fourth-consecutive month, according to the National Association of Home Builders/Wells Fargo Housing Market Index. But, though the index held steady, components gauging current sales conditions and sales expectations for the next six months both rose slightly. NAHB chairman Bob Nielsen said builders are beginning to see more interest from potential buyers but continue to face a challenging market. More here and here.

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Mortgage Rates, Application Volume Fall

According to The Mortgage Bankers Association’s Weekly Mortgage Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages fell to 5.12 percent from 5.13 percent the week before. With rates remaining above 5 percent, refinance and purchase activity were both down. The Refinance Index dropped 11.4 percent from the previous week and the Purchase Index decreased 5.9 percent. More here and here.

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Jobs Recovery, Housing Affordability Continue in 2011

Freddie Mac’s February 2011 Economic Outlook Report says the labor market will continue to improve this year, though the pace of the jobs recovery will be slow. The report, released by the office of chief economist Frank Nothaft, says housing will be supported by record high homebuyer affordability and, despite expected increases, mortgage rates will remain low by historical standards and do nothing to dampen the opportunity for buyers. Last month’s report estimated a 10 percent increase in home sales this year. More here and here.

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Signs of Sales Recovery, Price Improvement in Q4

Total existing-home sales surged 15.4 percent in the fourth quarter of 2010 and prices were up 0.2 percent year-over-year, according to The National Association of Realtors. Sales rose to an annual rate of 4.80 million in the fourth quarter, from 4.16 million in the third quarter, while home prices strengthened in 78 of 152 metropolitan statistical areas. Lawrence Yun, NAR’s chief economist, said home sales clearly recovered in the latter part of 2010, which helps to absorb excess inventory and relieve pressure on prices. The national median single-family existing-home price was $170,600, up from $170,300 in the fourth quarter of 2009. More here and here.

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Foreclosure Filings Down 17 Percent From Last Year

In January, foreclosure filings, which include default notices, scheduled auctions, and bank repossessions, rose 1.0 percent but were down 17 percent year-over-year, according to data from RealtyTrac. Default notices fell for the 12th straight month and are now 27 percent below year-before levels. James J. Saccacio, chief executive officer of RealtyTrac, said there have now been three straight months with fewer than 300,000 properties receiving foreclosure filings, following 20 straight months when the totals exceeded 300,000. More here, here, and here.

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Housing Affordability Makes Now The Time To Buy

Moody’s Analytics tracked the ratio of median home prices to annual household income in 74 markets and found housing affordability had returned to pre-bubble levels in 47 of those markets. Mark Zandi, chief economist at Moody’s, said, based on incomes, housing is as affordable as it gets, making it a good time to buy a home. During the housing bubble, prices rose faster than incomes and pushed the ratio to a peak of 2.3. As of last September, however, it dropped to 1.6, falling below the historical average of 1.9 between 1989 and 2003. More here, here, and here.

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Mortgage Loan Applications Fall As Rates Rise

According to The Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages rose to 5.13 percent last week from 4.81 percent the week before. The rate increase resulted in a 7.7 percent drop in the Refinance Index and a 1.4 percent decrease in the Purchase Index. Michael Fratantoni, MBA’s vice president of research and economics, said mortgage rates were up, as many incoming economic indicators continue to show stronger growth than had been anticipated. The four week moving average for total loan application volume is down just 0.9 percent. More here and here.

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1st-Time Buyers Find Market Conditions Favorable

Among consumers who purchased their first home in the last year, 67 percent said market conditions allowed them to afford a home sooner than they anticipated, according to a recent survey from Coldwell Banker. The survey found a majority of first-time buyers were able to get a better price on a home in a more desirable neighborhood than they expected. Also, 40 percent of those surveyed said they were able to afford a bigger house and 43 percent said they were able to lock in a lower mortgage rate than expected. According to The National Association of Realtors, first-time buyers accounted for half the market in 2010. More here and here.

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Housing Values Already Stabilized in One of Four Metro Areas

An analysis of home prices in more than 375 U.S. markets shows values have already leveled in one out of four metro areas. The report, released by Fiserv, lists San Diego, Washington D.C., and San Francisco among the areas where prices have already stabilized and estimates that 75 percent of metro markets will stabilize by the end of the year. The data also found increased demand as buyers return to the market due to improved affordability. More here and here.

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Housing Scorecard Finds Improvements in a Fragile Market

The U.S. Treasury and the Department of Housing and Urban Development released their January Housing Scorecard, which collects key housing-market indicators and highlights of the Administration’s recovery efforts. The scorecard shows increases in new and existing home sales, record high affordability, and improved homeowner assistance through the Federal Housing Administration and the Home Affordable Modification Program. HUD assistant secretary, Raphael Bostic, said the Administration’s efforts to provide mortgage assistance to struggling homeowners and promote stability in the market have resulted in improved conditions but the market remains fragile, as prices are unsettled. More here.

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