Freddie Mac’s December forecast hints at market stability in 2020
U.S. home sales are projected to climb to 6.2 million in 2020
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As U.S. home sales are projected to climb in 2020, Freddie Mac’s December Forecast indicates the housing market will continue to stand firm moving into the new year.
According to the government-sponsored enterprise, home sales are expected to increase from 6 million in 2019 to 6.2 million in 2020 and, as much as 6.3 million in 2021.
Read more from HousingWire.
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Mortgage rates have averaged 3.9% in 2019, marking the fourth-lowest annual average since 1971
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Mortgage demand light for holidays, but well ahead of last year
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The Mortgage Bankers Association (MBA) says mortgage application volume slowed significantly last week as Americans prepared for several major holidays. Its Market Composite Index, a measure of mortgage loan application volume, was down on a seasonally adjusted basis during the week ended December 20 by 5.3 percent compared to the previous week and was 6.0 percent lower on a non-adjusted basis.
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Read more at Mortgage News Daily.
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New home sales remain near 12 year highs
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New home sales continued their recent run in November, increasing by 1.3 percent from the revised October rate of 710,000 to a seasonally adjusted annual rate of 719,000 units. The numbers were deceiving however, as that October rate was revised down from the original estimate of 733,000 units. On an annual basis, the U.S. Census Bureau and Department of Housing and Urban Development said November sales were 16.9 percent higher than a year earlier when the rate was 615,000 units. Sales in October had been estimated at a 31.6 percent year-over-year improvement.
Read more at Mortgage News Daily.
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Senior housing wealth hits new record
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Senior housing wealth hit a record $7.19 trillion in the third quarter, according to a report by the National Reverse Mortgage Lenders Association (NRMLA).
Homeowners 62 and older saw their housing wealth grow by 0.3%, or $24 billion, quarter over quarter, according to the NRMLA/RiskSPan Reverse Mortgage Market Index (RMMI). The RMMI rose to 259.19 in Q3, its highest level since it was first published in 2000
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Read more at Mortgage Professional America.
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4 reasons there’s not enough building
Economists at NAR’s first Real Estate Forecast Summit said that while real estate will be on firm footing in 2020, a handful of issues are getting in the way of meeting demand for new residential construction.
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While industry economists at the National Association of REALTORS®’
Real Estate Forecast Summit
last week were optimistic about the housing market's performance in 2020, they also discussed challenges that continue to throw markets off balance. One big one: the continued need for more new construction to meet new household formation and replace obsolete stock.
Read more from NAR's Realtor Magazine.
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2020 color of the year for home interiors
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You may be seeing more blue in 2020.
Three companies have declared a shade of blue the color of the year for 2020, including
Pantone
,
PPG
and
Sherwin-William
s. Pantone has chosen “classic blue” as the top color for next year, calling it a “a reassuring presence instilling calm, confidence and connection.” PPG’s pick, “Chinese porcelain,” is described by the company as a “blend of cobalt, moody ink blue.” “Naval” is the pick of Sherwin-Williams, a “rich navy.”
Read more from the Pennsylvania Association of Realtors.
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Mortgage Market Update
Mortgage Rates, The Housing Bright Spot in 2019
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The 30-year fixed-rate mortgage rate saw little change again this week and averaged just 3.9% during 2019, the fourth lowest annual average since 1971 when Freddie Mac started its weekly survey.
Heading into 2020, low mortgage rates and the improving economy will be the major drivers of the housing market with steady increases in home sales, construction and home prices. While the outlook for the housing market is bright, worsening housing affordability is no longer a coastal phenomenon and is spreading to many interior markets and it is a threat to the continued recovery in housing and the economy.
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We hope you enjoyed this week's Market News. For more information about how PMA can help you, please contact us.
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Plymouth Meeting Office: 610.834.8700
Doylestown Office: 215.345.7600
Ocean City, NJ Office: 609.398.8600
Information and analysis is obtained through third parties and is deemed accurate but not guaranteed. Philadelphia Mortgage Advisors is a licensed mortgage lender by the PA Dept. of Banking and Securities, NJ Dept. of Banking & Insurance, the state of DE, the Florida Office of Financial Regulation, MD Mortgage Lender #23004 and VA State Corporation Commission #MC - 6797. NMLS #128570.
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