Surprise, surprise, mortgage rates have dropped again! We haven’t seen a rate this low in three years. For a thirty-year fixed rate mortgage the average is 3.51% with .7% in fees and points.
In the latest weekly survey, mortgage applications rose 7.2% from one week earlier.
On Thursday, January 30, the U.S. Census Bureau released their Quarterly Residential Vacancies and Homeownership report covering the fourth quarter of 2019.
About 88.5% of the housing units were occupied, leaving vacancies at 11.5%. Owner-occupied units made up 57.6% of the total housing units and renter-occupied units made up 30.9%.
The homeownership rate is on the rise after a major dip in 2016. In 2005 the homeownership rate was at its highest it has been this decade at 69.1%.
The Case-Shiller housing price index for November was released on Tuesday. The index is currently at 212.56, a change of 15 basis points from last month.
The Case-Shiller housing price index looks at the value of the housing supply in twenty individual metro areas and compiles those int a merged index. Of those metro areas, the ones with the highest year-over-year gains were Phoenix, Charlotte, and Tampa. Dallas had a year-over-year change of a positive 2.8%.
In more local news, Texas is the second most popular state for relocating according to the Texas Realtors’ 2020 Relocation Report. The data tracks numbers from 2018. The metros bringing the highest volume of residents to DFW are Los Angeles-Long Beach-Anaheim, New York-Newark-Jersey City, and Chicago-Naperville-Elgin. DFW had the highest number of incoming residents from out of stats at 200,966.
What’s also interesting to note is that we had 462,140 residents move out of state in 2018. Where’d they go? California, Oklahoma, and Colorado mostly.
With homeownership on the rise, low interest rates, a positive economic outlook, and an upcoming spring market, my crystal ball tells me that it’s about to get busy for Realtors.
Interest rates sank to the lowest level in three months. They’re about a quarter point away from being at all-time lows.
Rates are now at 3.6% with .8% in fees and points for a thirty-year fixed-rate mortgage.
In addition, some are saying that interest rates may even go lower this year and will stay low until the election in November.
Also at a near record low is the number of mortgage delinquencies. The national foreclosure rate is the lowest on record over the last 14-years.
Even though interest rates dropped, mortgage applications did not increase. They were down 1.2 percent from one week earlier.
The data is in for December’s existing-home sales. On Wednesday, the National Association of Realtors reported that existing home sales grew 3.6% in December. The total number of home sales ended at the same level in 2019 as it did in 2018. However, the median sales price was up 7.8% in December 2019 compared to December 2018. According to NAR’s chief economist, Lawrence Yun, to help with the affordability issue plaguing many buyers, price growth needs to get in line with wage growth, which is currently at about 3%.
In local news, Dallas is getting a new hotel that will have 39 micro rooms. A micro room is 100 to 200 square feet. That’s a 10’x10’ room up to a 14’x14’ room. In other words, the size of a secondary bedroom in most homes here. Supposedly the hotel amenities and designs make up for what that they lack in size.
Galleria Dallas is losing an anchor tenant, Belk, after only 5 years of being at the Galleria location. At the time we don’t know what might go in its place, but a comment from the management said The Galleria is working on “a strategic plan to evolve the property in the face of the rapidly changing retail climate… Great changes are on the horizon for Galleria Dallas, and we look forward to sharing those with the public.” This news comes just three days after it was reported that close competitor, Plano’s Shops at Willow Bend is late on its loan payment.
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.
If you’re looking to buy or sell real estate in DFW, let’s talk. Contact us on our website or call us at 214-803-4444.
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.