Monthly Archives: September 2019

The Future of the US Housing Market

Source: Peter DeVries, Loan Depot

This month marks the 11th anniversary of the government takeover of the mortgage giants Fannie Mae and Freddie Mac. Last Thursday, The Trump administration released its long-awaited blueprint to reform the nation’s housing finance system and privatize GSEs Fannie and Freddie.

The plan consists of a series of recommended legislative administrative reforms aimed to create a competitive mortgage market with a limited government role, protect American taxpayers against future bailouts, and help guide Americans toward the path to homeownership.

Whether the government successfully recapitalizes these agencies and ends this conservatorship or not, loanDepot is uniquely and proactively positioned with capital and a world class capital markets team to benefit from any changes that may transpire.

Home Price Trends

  • The CoreLogic HPI Forecast indicates that home prices will increase by 5.4% on a year-over-year basis from July 2019 to July 2020
  • Over a quarter of Millennials have expressed interest in buying a home in the next year
  • Connecticut and South Dakota were the only states to post declines in their year-over-year home prices

The expected reacceleration of home prices over the next year to just over 5% is caused by lower mortgage rates, making it more affordable for millennials to enter the market in the upcoming months. This increased demand for housing is the major driver for higher home prices, which we’ll likely continue to see rise for the foreseeable future.

Source: https://www.corelogic.com/insights-download/home-price-index.aspx

Home Price Trends

Mortgage rates dropped again this week! The 30-year fixed mortgage rate averaged 3.49% for the week ending September 5, a slight drop from 3.58% prior week. By contrast, mortgage rates stood at 4.54% a year ago, almost a full percentage higher than today. The historic low for 30-year rates was 3.31% in November 2012.

If you or your clients are in the market for a purchase or refinance, this fall may be a favorable time to apply for one and save on interest overtime. Don’t forget to ask me about loanDepot’s mello smartloan™ and how it could help enjoy a faster, more secure, stress-free mortgage process.

Source: http://www.freddiemac.com/pmms/

If you have any questions, contact me anytime! I can help your clients explore the best mortgage option for both purchase and refinancing.

Peter DeVries
NMLS# 1156114
Loan Consultant
1025 Black Lake Blvd SW Ste 1C
Olympia, WA 98502-1120
Office: (360) 706-6104
Cell: (360) 791-8064
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Home buyers seeking affordability are expanding search outside Greater Seattle job centers

Source: NWMLS

KIRKLAND, Washington (September 9, 2019) – Depleted inventory continues to frustrate would-be
buyers in Western Washington. Many of these potential homeowners are expanding their search beyond
the major job centers in King County, according to market watchers who commented on the latest
statistics from Northwest Multiple Listing Service.


The MLS report summarizing August activity shows less than two months of supply system-wide, and
only about 1.6 months of supply in the four-county Puget Sound region. The sparse selection is pushing
up prices. For last month’s sales of single family homes and condos across the 23 counties served by
Northwest MLS, prices rose nearly 6.2% compared to a year ago.


“Areas immediately outside the Puget Sound region and along the I-5 corridor continue to see double-
digit house price growth,” noted James Young, director of the Washington Center for Real Estate
Research (WCRER) at the University of Washington. He attributes the increase to high demand in these
areas “due to first-time homebuyers who struggle to afford housing in King and Snohomish counties as
well as from existing homeowners cashing out of Seattle and King County.”


“While August is always a slower time for listings and sales, what is really surprising this year is the
decrease in new listings taken, while pending sales increased,” observed Mike Grady, president and COO
of Coldwell Banker Bain.


A comparison of year-over-year statistics for August shows the volume of new listings dropped nearly
13% system-wide and 18.5% in King County. Last month’s total number of new listings (10,488)
declined 6.3% from July’s volume (11,193).


Brokers reported 10,602 pending sales (mutually accepted offers) during August for a 4.9% increase from
a year ago. Pending sales rose nearly 6.6% in the Puget Sound region, led by Snohomish County with a
gain of 15.8%. Six counties had double-digit gains while an equal number had declines.


Grady noted June and July were also lackluster this year with regard to listings “when typically they are
both still fairly active coming off spring. The pending sales numbers indicate that buyers are indeed out
there and willing to purchase, but there are simply not enough homes,” he commented, adding,
“Everything that is listed is getting sold and fairly quickly.”


The volume of total active listings is down more than 10% from a year ago, with only four of the 23
counties in the report showing a year-over-year increase (Chelan, Grays Harbor, San Juan and Whatcom).
Fourteen counties had double-digit drops. At month end there were 16,697 active listings in the MLS
database, down from the year-ago total of 18,580.


MLS figures show only seven counties have more than three months of supply, with four-to-six months
generally considered the volume needed for a balanced market.