Search

More States Achieving Stable Status on Freddie's Housing Indicator

by devteam June 25th, 2015 | Share

Freddie Mac said on Wednesday that itrnMulti-Indicator Market Index (MiMi) shows that the U.S. housing market isrncontinuing to stabilize and those markets which have improved to the greatestrndegree are also realizing the greatest benefits from the spring homebuyingrnmarket.</p

The national MiMi score of 78.7rnrepresents a 0.14 percent improvement from March to April and a 3.57 percentrngain for the year.  Since its all-timernlow in October 2010, the national MiMi has rebounded 33 percent, but it’s stillrnsignificantly off from its high of 121.7. </p

The Mimi measures the stability of thernnational housing market, that of the 50 states and the District of Columbia andrnthe top 100 metropolitan markets using local market data to assess where thernposition of each relative to its own long-term stable range.  Freddie Mac looks at home purchasernapplications, payment-to-income ratios (changes in home purchasing power basedrnon house prices, mortgage rates and household income), proportion of on-timernmortgage payments in each market, and the local employment picture. The fourrnindicators are combined to create a composite MiMi value for each market. Inrnaddition to measuring the current relative position, MiMi uses this data tornshow, at a glance whether each market is moving closer to or further away fromrnits stable range. A market can fall outside its stable range by being too weakrnto generate enough demand for a well-balanced housing market or by overheatingrnto an unsustainable level of activity.</p

Twenty-six states plus the District ofrnColumbia and 35 metro areas have MiMi values in a stable range, with thernDistrict of Columbia (97.8), North Dakota (96.3), Montana (92), Hawaii (91),rnand Alaska (87.4) ranking in the top five states; Fresno (94.8), Honolulurn(92.3), Austin (92.1), Los Angeles (89.1) and Salt Lake City, (88.9) were therntop metro areas.   </p

In April, 43 of the 50 states and 92 ofrnthe 100 metros were showing an improving three month trend. The same time lastrnyear, all 50 states plus the District of Columbia, and 99 of the top 100 metrornareas were showing such improvement. </p

Freddie Mac Deputy Chief Economist LenrnKiefer said, “We saw a significant improvement in housing marketsrnnationwide, with ten more metro areas and nine more states moving within rangernof their benchmark, stable level of housing activity. The West and Southwestrnareas of the country continue to lead the way, especially Colorado, Oregon andrnUtah, and California is right there as well. Unlike a year ago, when the mostrnimproving markets were those hardest hit by the Great Recession, we’re nowrnseeing stable markets among the most improving as well. So the strong housingrnmarkets are getting stronger, which reflects the better employment picture,rnrising home values and increased purchase activity in these markets with thernspring homebuying season in full swing.”

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.

About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

See all blogs
Share

Comments

Leave a Comment

Leave a Reply

Latest Articles

Real Estate Investors Skip Paying Loans While Raising Billions

By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...

Late-Stage Delinquencies are Surging

Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...

Published by the Federal Reserve Bank of San Francisco

It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...