Monday Market Update: 3 Data Drops You May Have Missed

Housing Records Are Making The Headlines – Check It Out!

What a month; the bumpy ride continues as we approach the end of a challenging year. I know that most of us have spent the last few weeks focused on gratitude and finding a new normal amidst the continued obstacles of the pandemic, so I wanted to reveal 3 serious stats that you may have missed in all the madness. Knowledge is power, and what you do with it is up to you (and we are happy to help too!).

#1: Home Price Gains This Fall Are Off The Charts. Literally. Mortgage News Daily has reported that nationwide home price increases in September recorded an annual appreciation of 7%. The expected increase as predicted by economists was between 5.1 and 5.4%. According to Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices, “The last time that the National Composite matched September's 7.0 percent growth rate was more than six years ago, in May 2014. This month's increase may reflect a catch-up of COVID-depressed demand from earlier this year; it might also presage future strength, as COVID encourages potential buyers to move from urban apartments to suburban homes. The next several months' reports should help to shed light on this question.”

Further Reading: September Home Price Gains Blow Away Forecasts

#2: Refinance Applications Reached A 7-Month High. During the week ending on November 20^th, refinance applications surged 79% over the same week last year. The week over week increase was 5%, with refinances accounting for just over 70% of all lending activity. Purchase applications also increased for the 2^nd week in a row, with volume calculated at 19% higher than the same week one year ago. Purchase applications have outpaced 2019 activity for the last 6 months, while refinance activity is now at its highest levels since April.

Further Reading: Refi Applications Hit 7 Month Highs

#3: New Home Sales Rise 41.5% Year-Over-Year. While new homes sales dipped slightly from September to October, the year-over-year increase was over 41%, while new construction inventory declined annually (5.5 months of supply in October 2019 compared to 3.3 month of supply in October 2020). The U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported that as of last month, 999,000 new homes sold, 278,000 homes remained for sale and the median sales price nationwide for a new home was $330,600.

Further Reading: New Home Sale Refuse to Back Down From 14-Year Highs ; Monthly New Residential Sales, October 2020