Monthly Archives: December 2015

House Price Index Rises .5 Percent

Source: RISMedia

U.S. house prices rose in October, up 0.5 percent on a seasonally adjusted basis from the previous month,
according to the Federal Housing Finance Agency (FHFA) monthly House Price Index (HPI).
The previously reported 0.8 percent increase in September was revised downward to reflect a 0.7 percent increase.

The FHFA HPI is calculated using home sales price information from mortgages sold to, or guaranteed by,
Fannie Mae and Freddie Mac. From October 2014 to October 2015, house prices were up 6.1 percent.

For the nine census divisions, seasonally adjusted monthly price changes from September 2015 to
October 2015 ranged from -0.5 percent in the New England division to +1.2 percent in the East
South Central division. The 12 month changes were all positive, ranging from +2.9 percent in the
New England division to +8.9 percent in the Mountain division.

To download the complete historical data, click here

Guest Post: What The Fed Rate Hike Means

“These are extraordinary times.” Bon Jovi. The Federal Open Market Committee marked the end of an “extraordinary seven-year period” Wednesday when it announced the first increase to the Fed’s benchmark Federal Funds Rate in nearly a decade.

This rate, which is used when banks lend money to each other overnight, was held near zero to support economic recovery following “the worst financial crisis and recession since the Great Depression,” said Fed Chair Janet Yellen. The Fed upped the target rate range a quarter point, to between 0.25 and 0.5 percent.

According to Yellen, the move “recognizes the considerable progress that has been made toward restoring jobs, raising incomes and easing the economic hardship of millions of Americans.” The increase also reflects the Fed’s confidence that economic factors still lagging behind desired levels will continue to improve, especially inflation, manufacturing and new home construction.

November Housing Starts, for example, rose 10.5 percent from October, according to the Commerce Department. This was above expectations. The jump nearly erases the 12 percent decline from September to October. After months of significantly higher multifamily unit home starts, single-family home starts were up to the highest level since January 2008.

So how will the Fed’s actions impact home loan rates? The increase to the Fed Funds Rate does not directly impact long-term consumer loans like purchase or refinance home loans, so home loan rates will not necessarily increase as a direct result of the Fed’s actions.

However, it’s important keep a watchful eye on economic headlines. The economic conditions that made the Fed comfortable with a rate hike—coupled with expectations of a further strengthening economy—could amplify investments in Stocks, which could negatively impact Bonds. This includes Mortgage Bonds, to which home loan rates are tied.

For now, home loan rates remain attractive.

If you or someone you know has questions about the housing market, refinancing or home loan options, please don’t hesitate to contact me.

Michelle Wickett
Senior Loan Originator
Axia Home Loans
Phone: 360-791-0513
michelle.wickett@axiahomeloans.com
www.mortgagesbymichellewickett.com

Home Prices Continue To Rise, Led By Western States

Source: RISMedia

Among the nation’s top 300 markets, a total of 170 or 57 percent have now
achieved full price recovery, according to Homes.com®’s September 2015
Local Market Index, a price performance summary of repeat sales in the top 100 markets,
and the companion Midsize Markets Report for the next 200 largest markets.

By September, 53 out of thr top 100 markets showed a complete
price recovery – two more than reported in August – with an additional
117 out of 200 midsize markets continuing to see recovery above pre-
recession levels.

San Francisco-Oakland-Hayward, Calif. led the nation in September
for the largest annual percentage change in pricing at 7.97 percent.
Denver-Aurora-Lakewood, Colo. came in second with a 7.73 percent
annual increase, and Portland Vancouver-Hillsboro, Ore.-Wash. was
third at 7.29 percent.