CoreLogic released its Home Price Index for January today, showing year-over-year price appreciation of 19.1% nationally. That's the highest rate of appreciation since this data series began in 1976. The caveat, of course, is that CoreLogic's own forecasts call for a deceleration in price gains throughout the year. Nonetheless, the annual pace should remain above 10% for the first seven months of 2022. The lowest price tier has enjoyed the fastest appreciation since the middle of 2013. This trend accelerated into the middle of 2021, but higher priced homes have been catching up since then. As always, appreciation varied significantly depending on the state. Arizona, Florida, Utah, Nevada, and Tennessee rounded out the top 5 while Illinois, New York, North Dakota, Alaska, and Washington D.C. saw the slowest growth. "In December and January, for-sale inventory continued to be the lowest we have seen in a generation,” said Dr. Frank Nothaft, chief economist at CoreLogic. “Buyers have continued to bid prices up for the limited supply on the market. However, the rise in mortgage rates since January further eroded buyer affordability and is expected to slow price gains in coming months.” This commentary is notable in light of the past 2 days of developments in the mortgage market where rates have fallen at the fastest 48-hour pace since the start of the pandemic. Before March 2020, you'd have to go back to late 2011 to see the average 30yr fixed rate drop any faster. Given that the drop in rates is driven by the Ukraine invasion, there's no telling how long the momentum will last.
Housing News | | CoreLogic released its Home Price Index for January today, showing year-over-year price appreciation of 19.1% nationally. That's the highest rate of appreciation since this data series began in 1976. The caveat, of course, is that CoreLog... (read more) |
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Housing News | | Mortgage applications have been making logical moves recently with higher rates causing a sharp deceleration in refinance activity. Purchases are off their recent highs as well, but in much better shape in the bigger picture. In this week's re... (read more) |
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Rob Chrisman | | Loan originators spend their time making people’s days (unlike this film clip). Builders hope that they make people’s days, and I spent some time this week with building industry expert Ivy Zelman. She is very interested in watching the “build-to-ren... (read more) |
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| On a normal week, we can follow day to day movement in rates and point out how far behind the times the week-to-week changes are. This time around, the week-to-week changes may have the upper hand due to the extreme 2-WAY volatility seen in the day-to-day movement. Specifically, rates plunged lower at the fastest pace in years on the first 2 da... (read more) |
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| Flight to Safety Dominates While Escalation Threats Remain The line of traders waiting to buy Treasuries is as long as the line of trucks waiting to invade Kyiv. As long as the world is convinced that things will get worse in Ukraine before they get better, bonds will remain well-bid. The overnight sessio... (read more) |
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