WASHINGTON–Freddie Mac’s newest Multi-Indicator Market Index (MiMi) shows the housing market’s ongoing improvement, with two additional states–New York and Kansas–entering their outer range of “stable housing activity,” as well as three more metro areas: New York City, Palm Bay, Fla. and Minneapolis.
According to Freddie Mac, the national MiMi value stands at 81.9, which indicates a market that is on its outer range of stable housing activity, while showing an improvement of +0.59% from September to October and a three-month improvement of +1.54%. The most dramatic increase, however, can be seen on a year-over-year basis, where the national MiMi value has improved +6.31%. Since its all-time low in October 2010, the national MiMi has rebounded 38%, but remains way below its all-time high of 121.7, according to Freddie Mac.
“While strong home purchase applications and rising home values in some markets are contributing to this improvement, its largely more of a reflection of mortgage delinquencies continuing to decline at a steady pace, especially in those hardest hit markets, and a better employment picture overall,” said Freddie Mac’s Deputy Chief Economist, Len Kiefer, in a statement. “States in the West are still seeing some of the strongest housing activity and among those Utah really stands out…We do expect homebuyer affordability to decrease in the coming year, but we don't expect tighter monetary policy to generate a spike in longer-term interest rates in the foreseeable future. The Fed has committed publicly to measured increases in short-term rates. While mortgage rates will rise modestly, they will still remain at historically low levels. Combined with stronger job and income growth, the net result may be strong growth in household formation, construction, and home sales.”