Homeowners continue to feel the benefits of a strong labor market and continued expanding economy. ATTOM Data Solutions reports that U.S. home sellers nationwide saw a realized home price gain of $65,500 in 2019, up from $58,100 in 2018 and up from $50,027 two years ago. In addition, the latest profit figure, based on median purchase and resale prices, marked the highest level in the U.S. since 2006, a 13-year high. “The nation’s housing boom kept roaring along in 2019 as prices hit a new record, returning ever-higher profits to home sellers and posing ever-greater challenges for buyers seeking bargains. In short, it was a great year to be a seller,” said Todd Teta, chief product officer at ATTOM Data Solutions.
Mortgage rates inched lower in Freddie Mac's latest survey and remain just above all-time lows. The 30-year fixed-rate mortgage fell five basis points to 3.60% with 0.8 in points and fees. It is the lowest rate in three months and about a quarter-point above the all-time low of 3.35% hit back on May 2, 2013. Sam Khater, Freddie Mac’s Chief Economist said, "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.”
The major U.S. stock indexes are under pressure today due to the coronavirus outbreak in China and in other parts of the globe. The Dow, S&P and NASDAQ began the trading day just below all-time highs. The markets are gearing up for next week's packed economic calendar that features GDP, Core PCE, Consumer Confidence and Sentiment along with housing data. Also, the two-day Fed meeting will kick off on Tuesday and ends Wednesday with the monetary policy statement being released at 2:00 p.m. ET. There is a zero percent chance of a change to the Fed Funds Rate at the meeting.
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