Mortgage Market News

CoreLogic, a consumer, financial and property information and analytics firm, reported that home price gains, including distressed sales, rose 6.8% from October 2014 to October 2015 as the housing recovery marches on. A spokesperson from CoreLogic said, “Many markets experienced a low inventory of homes offered for sale and strong buyer demand, sustaining upward pressure on home prices.” On a month-over-month basis, prices rose 1%, while the numbers for September 2014 to September 2015 were revised down to 5.55% from the 6.4% originally reported. Looking ahead, CoreLogic sees a 5.2 % increase from October 2015 to October 2016.
National manufacturing slipped again in November and fell below the 50.0 mark for the first time since November 2012 and the lowest level since June 2009. A few of the reasons for the decline is low oil prices coupled with a strong dollar. The ISM Index fell to 48.6 last month, below the 50.5 expected and below the 50.1 recorded in October. A reading above 50 indicates that the manufacturing economy is generally expanding; below 50 indicates that it is generally contracting.
A recent poll conducted by Reuters to a group of economists showed sales of existing homes in the U.S. are expected to pick up in 2016, although house price inflation probably will not. However, there are some risks in so far as some potential borrowers may be shut out due to a lack of available credit, low wage growth and higher interest rates. Of the 22 polled, 19 said they see the housing recovery as modest, three called it robust. None said it will be fragile.
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