Weekly Mortgage Update

In a move that surprised just about everyone, the Fed announced last week no change in their bond-buying program, known as QE-3. Home loan rates dropped significantly as a result.

The Consumer Price Index for August revealed that inflation remains tame, and at 1.5% remains well below the Fed’s target of 2%.

In housing news, the KCRAR market report for August shows home sales dipped slightly from July, but were 8% higher compared to August, 2012.

The HBA reported a slight dip in building permits, but August figures are the third highest monthly score for 2013.


Bottom Line for Mortgages

Mortgage rates are starting the week off much better than we’ve seen in recent weeks. 

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Mortgage Update

Friday’s Jobs Report that 168,000 jobs were created last month helped mortgage rates improve, since it was not as strong as expected. Also the labor force participation rate (how many people over 16 are working) fell to a 35-year low. 

Bottom Line for Mortgages

Rates continue to be “on-hold” until the Fed Open Market Committee Meeting next week. It’s anybody’s guess if they will begin “tapering” their bond-buying program this month, which has helped keep interest rates low since August, 2010.Image

Market Stats through July

Kansas City Metro 2013 2012 Difference
Number of Homes Sold 18,505 16,741 11%
Average Sales Price $180,730 $165,242 9%
       
Missouri 2013 2012 Difference
Number of Homes Sold 10,266 9,418 8%
Average Sales Price $147,800 $134,200 9%
       
Kansas 2013 2012 Difference
Number of Homes Sold 8,239 6,902 16%
Average Sales Price $222,200 $205,700 7%
       
July Stats 2013 2012 Difference
Total Active Listings 14,632 15,724 -7%
Average List Price $174,749 $173,897 1%
Days on Market 84 104 -24%
List Price to Sales Price Ratio 97.70% 96.20% 2%
Total Sales To Date 18,505 16,741 11%
Average Sales Price $152,546 $143,055 6%
Months of Inventory 5.5 6.6 -20%