Weekly Mortgage Update

The government shutdown means we did not see an updated Jobs Report for last month, and markets aren’t moving too much one way or the other. Last week CoreLogic reported a 12% increase in their year-over-year Home Price Index, which is continued good news for housing. 

Despite the shutdown, most lenders are still processing and CLOSING all types of mortgages – including FHA/VA and Conventional Loans.

Bottom Line for Mortgages

Mortgage rates are holding steady with all the uncertainty. This week’s release of the minutes from the last Fed meeting may cause rates to move a bit. 

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Economic Update

What will happen when the government shutdown starts.

Main thing affecting mortgages will be the shutdown of the FHA. They won’t be able to underwrite and approve new loans if there’s a shutdown, so let’s hope this shutdown gets over with quickly….

Other news from last week was a 2.5% growth in the Gross Domestic Product, which was in-line with expectations. Also the Case-Shiller index rose by 12.4% compared to the same time last year.

Bottom Line for Mortgages

Mortgage rates are lower again at the start of the week with all the uncertainty.

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August Year-To-Date Sales

Kansas City Metro 2013 2012 Difference
Number of Homes Sold 21,713 19,685 10%
Average Sales Price $182,336 $166,453 10%
       
Missouri 2013 2012 Difference
Number of Homes Sold 12,033 11,061 8%
Average Sales Price $162,600 $135,300 17%
       
Kansas 2013 2012 Difference
Number of Homes Sold 9,680 8,624 11%
Average Sales Price $223,000 $206,900 7%
       
August Stats 2013 2012 Difference
Total Active Listings 14,503 15,368 -6%
Average List Price $174,953 $163,826 6%
Days on Market 85 97 -14%
List Price to Sales Price Ratio 96.20% 95.90% 1%
Total Sales To Date 21,713 19,685 9%
Average Sales Price $158,990 $133,089 16%
Months of Inventory 5.3 6.2 -17%

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%