FHFA Monthly Home Prices: January 2014

Today, the Federal Housing Finance Agency (FHFA) released the latest results of their monthly house price index (HPI) showing that in January, nationally, home prices increased 0.5% from December and rose 7.38% above the level seen in January 2013.

The FHFA monthly HPI are formulated from home purchase information collected from mortgages that have been sold to or guaranteed by Fannie Mae and Freddie Mac.

S&P/Case-Shiller: January 2014

Today's release of the S&P/Case-Shiller (CSI) home price indices for January reported that the non-seasonally adjusted Composite-10 price index went flat with prices rising just 0.01% from December while the Composite-20 index actually declined 0.08% over the same period.

The latest CSI data appears to be indicating that the typical seasonal deceleration in prices is underway with the extent of the slowing still to be decided with coming months data.

The 10-city composite index increased 13.54% as compared to January 2013 while the 20-city composite increased 13.24% over the same period.

Both of the broad composite indices still show significant peak declines slumping -20.42% for the 10-city national index and -19.86% for the 20-city national index on a peak comparison basis.

New Home Sales: February 2014

Today, the U.S. Census Department released its monthly New Residential Home Sales Report for February showing a notable decline with sales falling 3.3% from January dropping 1.1% below the level seen in February 2013 and remaining at an historically low level of 440K SAAR units.

The monthly supply increased to 5.2 months while the median selling price declined 1.24% and the average selling price increased 1.60% from the year ago level.

The following chart show the extent of sales decline to date (click for full-larger version).

Existing Home Sales Report: February 2014

Today, the National Association of Realtors (NAR) released their Existing Home Sales Report for February showing weak sales with total home sales falling 0.4% since January dropping 7.1% below the level seen in February 2013.

Single family home sales also weakened dropping 0.2% from January falling a notable 6.9% below the level seen in February 2013 while the median selling price increased 9.0% above the level seen a year earlier.

Inventory of single family homes increased from January to 1.73 million units and climbed 4.8% above the level seen in February 2013 which, along with the sales pace, resulted in a monthly supply of 5.1 months.

The following charts (click for full-screen dynamic version) shows national existing single family home sales, median home prices, inventory and months of supply since 2005.

Reading Rates: MBA Application Survey – March 12 2014

The Mortgage Bankers Association (MBA) publishes the results of a weekly applications survey that covers roughly 50 percent of all residential mortgage originations and tracks the average interest rate for 30 year and 15 year fixed rate mortgages as well as the volume of both purchase and refinance applications.

The purchase application index has been highlighted as a particularly important data series as it very broadly captures the demand side of residential real estate for both new and existing home purchases.

The latest data is showing that the average rate for a 30 year fixed rate mortgage (from FHA and conforming GSE data) increased 5 basis point to 4.37% since last week while the purchase application volume declined 1% and the refinance application volume declined 3% over the same period.

The following chart shows the average interest rate for 30 year and 15 year fixed rate mortgages since 2006 as well as the purchase, refinance and composite loan volumes (click for larger dynamic full-screen version).

ADP National Employment Report: February 2014

Today, private staffing and business services firm ADP released the latest installment of their National Employment Report indicating that the situation for private employment in the U.S. improved in February as private employers added 139,000 jobs in the month bringing the total employment level 1.90% above the level seen in February 2013.

Look for Friday’s (possibly postponed) BLS Employment Situation Report to likely show somewhat similar trends.

Construction Spending: January 2014

Today, the U.S. Census Bureau released their latest read of construction spending showing mixed results for January with total private construction spending and single family construction spending rising since December while non-residential construction spending declined over the same period.

On a month-to-month basis, total residential spending increased 1.10% from December climbing 14.60% above the level seen in January 2013 and remaining well below the peak level seen in 2006.

Single family construction spending increased 2.30% from December rising 21.00% since January 2013 remaining well below it's peak level reached in 2006.

Non-residential construction spending declined 0.20% from December rising 9.70% below the level seen in December 2012 and remaining a well below the peak level reached in October 2008.

The following charts (click for larger dynamic versions) show private residential construction spending, private residential single family construction spending and private non-residential construction spending broken out and plotted since 1993 along with the year-over-year, month-to-month and peak percent change to each since 1994 and 2000 – 2005.