Mortgage Rates Hold Steady
With a lack of major economic data outside of the housing sector, last week was a quiet week for mortgage markets, and rates ended with little change.
Home Sales Rise
In October, sales of existing homes rose modestly from September and were 3% higher than a year ago, the first annual increase in over three years. The median existing-home price of $407,200 was up 4% from last year at this time. Inventories remain stuck at historically low levels, standing at just a 4.2-month supply nationally, far below the 6-month supply typical in a balanced market. On a brighter note, though, inventories were 19% higher than a year ago.
Mixed Signals from Housing Data
While the latest report on housing starts was a bit disappointing, the results in many regions were negatively impacted by hurricanes. In October, single-family housing starts declined 7% from September and were slightly lower than a year ago. By contrast, single-family building permits, a leading indicator of future construction, increased from September to the highest level since April. In addition, a separate survey of home builder sentiment on housing market conditions from the NAHB was stronger than expected.
Mortgage Applications Rebound
Mortgage applications improved modestly last week. According to the latest data from the Mortgage Bankers Association (MBA), applications to refinance rose 2% from the prior week and were a massive 43% higher than one year ago. Purchase applications also rose 2% from the prior week but still were down slightly from last year at this time.
Mortgage Rates for the week of 11-25-2024