Mortgage News for the Week of January 17, 2020
It's Only January, But Homebuyer Demand Hits Highest Level in 11 Years
Purchase application volume hit the highest level since October 2009, rising 16% for the week and 8% from a year ago, according to Mortgage Bankers Association data. Refinance applications jumped 43% for the week and were 109% higher than one year ago.
Read the Latest Housing Market Data for the Philadelphia Region from Long & Foster's Market Conditions Report
Fewer U.S. Homeowners Moved in 2019 Than Ever Before
Remodel Activity is Up as People Are Staying In Their Homes
What do Americans do when so few new homes are being built? Remodel, according to the latest report for Buildfax. 

According to the housing data and analytics company, 2019 marked the lowest rate of mobility in the U.S. since the metric was first tracked in 1947. Only 9.8% of Americans moved last year. Read more at Housing Wire.
Home Builders Confidence Remains Near 20-Year High
The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) settled back a bit after its 5-point surge in December took it to its highest level since 1999. The Index, a measure of builder confidence in the market for newly constructed homes, dipped 1 point in January to 75, still remaining above that earlier high. Read more at Mortgage News Daily.
US Housing Starts Soar 16.9% in December to a 13-Year High
  • U.S. homebuilding surged to a 13-year high in December as activity increased across the board.
  • The data suggested the housing market recovery was back on track amid low mortgage rates, and could help support the longest economic expansion on record.
  • Housing starts jumped 16.9% to an annual rate of 1.608 million units last month, the highest level since 2006.
US Home Prices Up 7% in December
U.S. home-sale prices  increased 6.9% year over year in December to a median of $312,500 across the 217 metros Redfin tracks. Home prices were also up 1.1% month over month on a seasonally-adjusted basis, the largest increase since February 2018. Read more from Redfin.
Mortgage Market Update
Mortgage Rates Generally Hold Steady
Mortgage rates inched up by one basis point this week with the 30-year fixed-rate mortgage averaging 3.65 percent. By all accounts, mortgage rates remain low and, along with a strong job market, are fueling the consumer-driven economy by boosting purchasing power, which will certainly support housing market activity in the coming months. While the outlook for the housing market is positive, worsening homeowner and rental affordability due to the lack of housing supply continue to be hurdles, and they are spreading to many interior markets that have traditionally been affordable.
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
Ocean City, NJ Office: 609.398.8600
 
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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