Freddie Mac recently delivered its latest Multi-Indicator Market Index (MiMi), illustrating the progressing rebound of the national housing market. MiMi tracks and gauges the strength of the national housing market, as well as that of all 50 states and the top 100 metro areas. It blends Freddie Mac’s own data with local market data to determine the trends of single-family housing markets by examining a host of factors. The index uses three ranges to demarcate value: weak, stable, and elevated. Two states—New York and Kansas—and three metro areas—New York, NY; Minneapolis, MN and Palm Bay, FL—were upgraded to ‘stable’ status in the most recent report.
Currently, the national MiMi value sits at 81.9, revealing an overall market in the ‘stable’ range, with a three-month increase of +1.54% and a year-over-year improvement of +6.31%. While it has gone up 38% since its all-time low in October 2010, it continues to lag behind the all-time high of 121.7. Overall, 32 states and Washington D.C. fall in the ‘stable’ range. Last year at the same time, only 21 states and Washington D.C. had stable values. Additionally, 53 of 100 major metro areas are marked as stable, while only 29 were a year ago.
The biggest jumps by states over last month were New York, New Jersey, Florida, Oregon, and Colorado. By metro area, Allentown, PA; Tampa, FL; Cleveland, OH; Palm Bay, FL, and Las Vegas, NV fared best when compared to last month. Over the last three months, 43 of 50 states and 89 of 100 metro areas have shown an upward trend.
According to Len Kiefer, the Deputy Chief Economist at Freddie Mac, the rebound has been primarily due to the continuing decrease in mortgage delinquencies and better employment figures. Steady buyer demand, robust economies, and above-average job creation in Western states like Utah have buoyed markets. Kiefer forecasts a modest rise in mortgage rates, but expects them to stay within historically low levels. As unemployment falls and incomes rise, he predicts robust growth in household formation, construction, and home sales.
As the housing market continues to improve nationwide, we can expect to see increased business for lenders and loan officers. Acuity National Real Estate Solutions is here to help meet that demand. We are considered one of the most technologically advanced title companies in the nation, offering clients a 24-hour portal where they can access, upload, and download files at any time. For more information, please visit our homepage.