Weekly Economic Update

The National Association of REALTORs reported a rise in existing home sales last month. 

Our local KCRAR also reported a 2 percent rise in existing home sales over the prior year, which is more good news.

Bottom Line for Mortgages:

Concerns over industrial output in China helped drive mortgage rates to some of their lowest levels in months last week, as investors sought the “safe haven” of U.S. treasury bonds.

The Federal Reserve will be meeting this week on Jan. 28-29. They will be looking at housing, inflation and recent employment data very closely as they wrestle with the decision to “taper” their bond-buying efforts. 

Mortgage rates are very favorable as we start the week. 

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Weekly Economic Update

New housing starts took a dip last month, but it remains to be seen if that’s mainly due to a normal holiday slowdown.  RealtyTrac also reported that foreclosure filings dropped to the lowest level since 2007, which is very good news.

Retail sales also rose by 0.2 percent, above expectations.

Bottom Line for Mortgages:

The Federal Reserve is going to be watching economic reports closely between now and their next meeting on Jan. 28-29. If the positive economic news continues, it could spur the Fed to taper their bond-buying efforts more quickly.

For now rates remain favorable.

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Current Market Stats

90-day Market Stats for Single Family properties in
Jackson County, MO as of 03 Jan 2014
Median List Price: $144,166 Average List Price: $175,136
Total Inventory: 3,469 Price Per Square Foot: $77/SqFt
Average Home Size: 1,729 SqFt Median Lot Size: 23,973 SqFt
Average # Beds: 3.17 Average # Baths: 1.98
Homes Absorbed: 229 Newly Listed: 199
Days on Market: 84 days Average Age: 51 years
90-day Market Stats for Single Family properties in
Johnson County, KS as of 03 Jan 2014
Median List Price: $272,995 Average List Price: $347,274
Total Inventory: 2,060 Price Per Square Foot: $117/SqFt
Average Home Size: 2,494 SqFt Median Lot Size: 50,578 SqFt
Average # Beds: 3.74 Average # Baths: 2.71
Homes Absorbed: 165 Newly Listed: 131
Days on Market: 69 days Average Age: 29 years

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November Year-To-Date Sales

 

Kansas City Metro 2013 2012 Difference
Number of Homes Sold 29,183 26,644 10%
Average Sales Price $183,013 $167,475 9%
       
Missouri 2013 2012 Difference
Number of Homes Sold 16,181 15,060 7%
Average Sales Price $150,200 $137,300 9%
       
Kansas 2013 2012 Difference
Number of Homes Sold 13,002 11,584 11%
Average Sales Price $224,300 $207,100 8%
       
November Stats 2013 2012 Difference
Total Active Listings 12,777 13,145 -3%
Average List Price $192,180 $154,686 20%
Days on Market 90 101 -11%
List Price to Sales Price Ratio 95.90% 95.10% 1%
Total Sales To Date 29,183 26,644 9%
Average Sales Price $148,814 $137,727 7%
Months of Inventory 4.8 5.4 -1%

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Weekly Economic Update

This is the week we’ve been waiting all month for, since the Federal Reserve Open Market Committee meets this week. We will see if the run of recent good news on housing and employment will “tip the scales” for the Fed to consider tapering the bond-buying program, which has kept rates low.

Last week CoreLogic reported a 30% drop in foreclosure activity in October, compared to last year. 

And after a run of weekly declines, Initial Jobless Claims jumped by nearly 70,000 last week, pushing claims to the highest level since early October.

Bottom Line for Mortgages

Activity in bond markets is light to start the week. It appears that many investors are taking a “wait and see” approach until after the Fed releases their statement this Wednesday at 1:00 p.m., CST.

Any indication that they will start slowing their bond purchases could push mortgage rates higher. 

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