Mortgage News for the Week of January 24, 2020
Existing Home Sales Jump 3.6% vs. 1.5% Expected
Share of First-Time Home Buyers Rises Significantly in the Final Quarter of 2019
According to NAHB’s lates t  Housing Trends Report , the share of adults who are considering purchasing a home in the next 12 months fell to 11% in the final quarter of 2019, down from 13% a year earlier. This decline marks the fifth consecutive year-over-year drop in the share of American adults planning to buy a home in the year ahead, a trend likely spurred by th e  low levels of housing inventory  av ailable in the market. Read more from the National Association of Home Builders.
Home Prices Still Growing at More than 5% Annually
The annual rate of home price increases continued at a stable rate in November according to the Federal Housing Finance Agency (FHFA), however there are indications of some acceleration on a shorter-term basis. The FHFA's Housing Price Index (HPI) rose 4.9 percent compared to November of 2018. The annual increase in October was 5.0 percent . Read more at Mortgage News Daily.
Supply of Homes For Sale Hits Record Low, and Prices Suddenly Jump
  • Demand is surging because mortgage rates are about a full percentage point lower than they were a year ago, and the largest generation, millennials, are aging into their homebuying years.
  • That demand pushed the supply of homes for sale down 8.5% annually to the lowest level since the Realtors began tracking inventory in 1982.
  • The huge imbalance between supply and demand caused the median home price in December to jump 7.8% annually, the biggest annual increase in almost four years.
First-Time Buyers Catch a Break, NAR’s Yun Says
Low mortgage rates are making up for lagging income growth.
The cheapest financing in more than three years is making it easier for first-time buyers to afford a home. A tiny bit easier.

Instead of having just enough income needed to buy a median-priced starter home at current mortgage rates, they now have a small buffer, according to Lawrence Yun, chief economist of the National Association of Realtors. Read more from Housing Wire.
Home Seller Profits Hit New High as People Are Staying in Their Homes Longer Than Ever
People are staying in their homes longer than ever before, but it may pay off big for them should they choose to move.

That’s according to a recent report from ATTOM Data Solutions, which stated that both homeownership tenure and home seller profits simultaneously hit new highs.

ATTOM’s Year-End 2019 U.S. Home Sales Report states that the average American home seller took in a $65,500 profit in 2019. That’s up from $58,100 in 2018 and up from $50,027 before that. Read more from Housing Wire.
Mortgage Market Update
Low Rates Responsible for Surge in Housing Market
The very low rate environment has clearly had an impact on the housing market as both new construction and home sales have surged in response to the decline in rates, the rebound in the economy and improving financial market sentiment.
We hope you enjoyed this week's Market News. For more information about how PMA can help you, please contact us.
Plymouth Meeting Office: 610.834.8700
Doylestown Office: 215.345.7600
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Information and analysis is obtained through third parties and is deemed accurate but not guaranteed. Philadelphia Mortgage Advisors is a licensed mortgage lender by the PA Dept. of Banking and Securities, NJ Dept. of Banking & Insurance, the state of DE, the Florida Office of Financial Regulation, MD Mortgage Lender #23004 and VA State Corporation Commission #MC - 6797. NMLS #128570.
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