Ouch! Not a good day for housingby Tim Manni
Today was not a good day for the housing market. A group of negative reports revealed a market that still hasn’t found much solid footing at all.
Mortgage rates are trending upward: The 30-year Conforming fixed rate has risen appreciably in the last few days. According to HSH.com, the 30-year fixed ended the day at 4.54 percent, unchanged from yesterday.
Mortgage applications suffer: Both purchase and refinance applications dropped for the week ending November 12, according to the Mortgage Bankers Association. Purchase apps were down 14.4 percent from the week prior, and refinance apps fell by 16.5 percent, “the lowest level observed since July of this year,” writes Jann Swanson of Mortgage News Daily.
For a while now, the whole mortgage market has been running on refinances. The more we see mortgage rates increase, the more we’re going to see refinance applications decrease — just look at last week’s applications for proof.
Home values fell: CoreLogic’s September report recorded the second straight month of home price declines, after several months of improving data. Despite those small gains, prices in September were still 29.13 percent below their April 2006 peak, according to CoreLogic’s Home Price Index,.
Housing starts are down to near-record low: U.S. construction continues to suffer, and the month of October was no different. Single-family housing starts fell by just 1.1 percent from September, but are down 8 percent from October of last year. The more significant declines came in multi-family housing starts which fell by 43.5 percent from September:
Analysts had blamed a backlog of unsold new homes, coupled with turmoil in markets for existing homes where falling prices and a rising tide of bank foreclosures, for creating uneasiness that casts a pall over future prospects.