• CMG MORTGAGE, INC. NMLS #1820
  • Cindy MacDonell
  • News
  • Market Recap: Existing and New Home Sales Disappoint, FHFA House Price Index Improves

Market Recap: Existing and New Home Sales Disappoint, FHFA House Price Index Improves

  • May 26, 2017

This week, mortgage rates hovered year-long lows.  New home sales and existing home sales flattened, each declining month-over-month but still improving year-over-year.  The Federal Housing Finance Agency (FHFA) house price index appreciated slightly.

New home sales retreated from last month’s ten-year high, dropping 11.4% month-over-month to a level of 569,000.  However, this figure is 0.5% higher year-over-year.  In total, new home sales are approximately 13% higher in Q1 2017 compared to the same time last year.  The median sales price for a new home decreased from $318,700 to $309,200 and inventory on the market increased from 4.9 months’ worth to 5.7 months’ worth.  Last week, homebuilders reported a confident housing outlook and demand for new homes remains strong.

In March, he FHFA house price index appreciated 0.6% month-over-month and 6.2% year-over-year.  The Pacific region drove gains, up 1.4% month-over-month and 7.9% year-over-year.  The Mountain states and Mid-Atlantic region also increased, but more moderately.  As demand continues to outpace supply, prices are expected to appreciate. 

Existing home sales took a downturn in April, dropping 2.3% month-over-month to a rate of 5.57 million.  Housing inventory did increase, up 7.2% month-over-month, but down 9.0% from this time one year ago.  The market has faced a shortage in available homes for sale, driving prices up and shortening time on the market. 

Homebuilders are struggling to replenish inventory due to labor and land shortages and increases in building materials.  These inventory constraints may cause sharper price appreciation.  However, rates remain historically low. 

 

Sources: Bloomberg, MarketWatch, Mortgage News Daily, Reuters

Cindy MacDonell
Senior Loan Officer
NMLS # 316198
Branch NMLS # 1270689

Cindy MacDonell

PHONE: (707) 781-8185
cmacdonell@cmgfi.com

APPLY NOW
© 2016 CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender, licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; Loans made or arranged pursuant to a California Finance Lenders Law license No. 6053674. Offer of credit is subject to credit approval. For State specific licensing, visit www.cmgfi.com/licensing.php. To verify our state licenses, please visit www.nmlsconsumeraccess.com. This site is not intended to serve as a business solicitation for residents in the state of Massachusetts and New York.