Housing was more affordable in November than at any time in the last 40 years. So it should come as no surprise that Existing Home Sales were UP 5.6% for November, bringing them to an annual rate of 4.68 million, a tad above the expected 4.65 million rate. Sales were up for single-family homes, although down for condos and coops, and all regions of the country registered gains.
There were few surprises from the economic news released this week. The U.S. economic data generally was very close to the consensus forecasts, and activity levels were low during the holiday season. While daily volatility remained high, Austin mortgage rates ended the week nearly unchanged from last week.
The government extended mortgage Insurance (MI) tax deductibility through December 31, 2011. As a result, you can deduct MI premiums from your income taxes. What's more, MI can be canceled once you build enough equity in your home.
Last Thursday it was good to see that Housing Starts picked up for November, rising 3.9% for the month to an annual rate of 555,000 units. This beat expectations and was especially gratifying because all the gain came from a 6.9% increase in single-family starts. These have now been up three out of the last four months.
There wasn't a ton of news impacting the housing market last week, but we did get more talk about the move up in Austin mortgage rates. Freddie Mac's weekly survey of conforming mortgages showed the average rate on a 30-year fixed-rate mortgage back at the level it was last June. That still puts Austin mortgage rates below where they were a year ago when everyone was happy to get in on those bargains. So none of this is bad news in the absolute sense but the trend should be noted. People who want to buy or refinance should not drag their feet!
FHA announces extension of condominium project approvals with an expiration date of December 7, 2010. The extensions were granted to reduce the impact of processing and reviewing the number of project approvals expiring at the same time while recognizing current housing market conditions.
Last Thursday the National Association of Realtors (NAR) reported Pending Home Sales for October UP 10.4% over the month before. This index is a measure of signed purchase contracts, which bodes well for Existing Home Sales a couple of months out. The NAR's chief economist commented, "It is welcoming to see a solid double-digit percentage gain, but activity needs to improve further to reach healthy, sustainable levels. The housing market clearly is in a recovery phase and will be uneven at times, but the improving job market and consequential boost to household formation will help the recovery process going into 2011."
