MCLEAN, Va., July 23, 2014 /PRNewswire/ -- Freddie Mac (OTCQB:
FMCC) today released its Multi-Indicator Market IndexSM
(MiMiSM) showing mixed signals for the U.S. housing
market as more markets move into their stable range of housing
activity including Salt Lake City,
Los Angeles, Nashville and Pittsburgh metro areas as well as Idaho and Utah states. However, similar to last
month, most housing markets remain stalled largely due to weak home
purchase mortgage applications.
News Facts:
- The national MiMi value stands at -2.64 points indicating a
weak housing market overall with only a slight decline (-0.05
points) from April to May and a 3-month trend change of (+0.06
points), which is considered flat. However, on a year-over-year
basis, the U.S. housing market has improved by 0.86 points. The
nation's all-time MiMi low of -4.42 was in November 2010 when the housing market was at its
weakest.
- Thirteen of the 50 states plus the District of Columbia are in their stable range
with North Dakota, the
District of Columbia, Wyoming, Alaska and Montana ranking in the top five.
- Eight of the 50 metro areas are in their stable range with
San Antonio, Austin, Salt Lake
City, New Orleans and
Houston ranking in the top
five.
- The most improving states month-over-month were Illinois (+0.05), Massachusetts (+0.04) and New Mexico (+0.01) with Arkansas, Colorado, Montana and Ohio all tied (-0.02.) From one year ago, the
most improving states remained unchanged: Florida (+1.68), Nevada (+1.60), California (+1.15), South Carolina (+1.14) and Idaho (+1.11).
- The most improving metro areas month-over-month were
Chicago (+0.04), Riverside (+0.02), and Providence (+0.01) with Boston, Miami, Orlando and Salt
Lake City metro areas all tied and unchanged (0.00.) From
one year ago the most improving metro areas were Miami (+2.13), Orlando (+1.80), Las
Vegas (+1.58), Riverside
(+1.53), and Austin (+1.48).
- In May, 9 of the 50 states and 17 of the 50 metros are showing
an improving three month trend. The same time last year, 49 states
plus the District of Columbia, and
48 metros were showing an improving three month trend.
Quote attributable to Freddie Mac Chief Economist Frank Nothaft:
"We saw an additional handful of metro areas move back into
their stable range in May despite most markets still trying to get
beyond stall speed. When we look at the other MiMi indicators
outside of mortgage purchase applications, the news remains
positive - unemployment rates are coming down, more borrowers are
paying their mortgages on time, and mortgage rates remain low.
Moreover, while house price growth is moderating, many markets can
still sustain additional house price gains while still maintaining
strong homebuyer affordability. So we remain cautiously optimistic
the housing recovery will continue, albeit slowly, until we see
more tightening in the labor markets to give personal incomes a
much needed jolt."
Quote attributable to Freddie Mac Deputy Chief Economist
Len Kiefer:
"It's no surprise markets aren't improving at the same pace as
last year. Nevertheless, it's encouraging to see more markets
healing. The standout this month is the Salt Lake City metro area with three of its
four MiMi indicators are back in their stable range of activity. In
fact, on a yearly basis, the metro area finds its purchase
applications are up on a year-over-year basis. The positive trend
in home purchase applications reflects a strong local labor market,
with employment growth in the Salt Lake
City metro area about double the national average."
The May release of MiMi includes revisions to the purchase
applications indicator level to account for refinements to the
index.
MiMi monitors and measures the stability of the nation's housing
market, as well as the housing markets of all 50 states, the
District of Columbia, and the top
50 metro markets. MiMi combines proprietary Freddie Mac data with
current local market data to assess where each single-family
housing market is relative to its own long-term stable range by
looking at home purchase applications, payment-to-income ratios
(changes in home purchasing power based on house prices, mortgage
rates and household income), proportion of on-time mortgage
payments in each market, and the local employment picture. The four
indicators are combined to create a composite MiMi value for each
market. Monthly, MiMi uses this data to show, at a glance, where
each market stands relative to its own stable range of housing
activity. MiMi also indicates how each market is trending, whether
it is moving closer to, or further away from, its stable range. A
market can fall outside its stable range by being too weak to
generate enough demand for a well-balanced housing market or by
overheating to an unsustainable level of activity.
For more detail on MiMi see the FAQs. MiMi is released at
10 a.m. EDT monthly. The most current
version can be found at FreddieMac.com/mimi.
Freddie Mac was established by Congress in 1970 to provide
liquidity, stability and affordability to the nation's residential
mortgage markets. Freddie Mac supports communities across the
nation by providing mortgage capital to lenders. Today Freddie Mac
is making home possible for one in four home borrowers and is one
of the largest sources of financing for multifamily housing.
Additional information is available at FreddieMac.com , Twitter
@FreddieMac and Freddie Mac's blog FreddieMac.com/blog.
Photo - http://photos.prnewswire.com/prnh/20140723/129720
SOURCE Freddie Mac