Thursday, November 30, 2006

Weekly Overview: Housing & Mortgage

The Office of Federal Housing Enterprise Oversight (OFHEO) reported today that U.S. home prices grew at an annual rate of 3.5% in the 3rd quarter. Including the third quarter, home prices are up 7.7% in the past year, the slowest in three years. A year ago, prices were rising at 13.4%. In last 5 years, home prices have risen by a whopping 57%.

Also, according to an estimate released by the Commerce Department, sales of new homes fell 3.2% in October. New-home sales are now down 25.4% in the past year. Median sales prices were up 2% in the past 12 months to $248,500, reversing a trend toward falling prices year over year. In a separate report Wednesday, the Commerce Department said the U.S. economy grew at a 2.2% annual rate in the third quarter, an upward revision from the 1.6% initially reported.

The long-term mortgage rates fell for the fifth straight week. The rates are now lower than their year-ago levels. According to Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 6.14% in the week that ended today -- down from its 6.18% average last week. The rate was 6.26% one year back. The 15-year fixed rate averaged at 5.87% this week, again a slide from last week's 5.91%. At this time last year this rate was 5.81%.

Rate for 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) averaged at 5.95% decreasing from last week's 5.99%. This rate averaged 5.76% a year ago. The 1-year Treasury-indexed ARMs have an average rate of 5.46%, down from last week's rate of 5.49%. At this time in 2005, the 1-year ARM averaged 5.16%.

Labels: ,


0 Comments:

Post a Comment

<< Home