Monthly economic update
November 2019

REAL ESTATE
 

Home sales retreated in September: the National Association of Realtors said that residential resales were down 2.2% for the month, and the Census Bureau announced a dip of 0.7% for new home buying. In better news, existing home sales were up 3.9% year-over-year through September, and the NAR’s pending home sales index rose 1.5% during that month.6,14

The median sale price of an existing home was $272,100 in September. According to the NAR, that represents a 5.9% YTD gain. A 7.9% September drop left the median sale price for a new home at $299,400; the median sale price had declined 8.8% through three quarters of the year.14

Turning to home loans, an examination of Freddie Mac’s October 3 and October 31 Primary Mortgage Market Surveys reveals increases for mortgage rates. The average interest for the 30-year, fixed-rate home loan went from 3.65% to 3.78% between October 3 and 31, and mean interest for the 15-year, fixed-rate mortgage rose to 3.19% from 3.14%.15

30-year and 15-year fixed rate mortgages are conventional home loans generally featuring a limit of $484,350 ($726,525 in high-cost areas) that meet the lending requirements of Fannie Mae and Freddie Mac, but they are not mortgages guaranteed or insured by any government agency. Private mortgage insurance, or PMI, is required for any conventional loan with less than a 20% down payment.

CITATIONS:

6 - investing.com/economic-calendar [10/31/19]

14 - quickenloans.com/blog/durable-goods-orders-disappoint-market-update [10/30/19]

15 - freddiemac.com/pmms/archive.html [10/31/19]

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