2/2/2023 – MetroIntelligence Economic Update by P. DUFFY
MetroIntelligence Economic Update by P. DUFFY
In the most overvalued housing markets, monthly costs can range up to two-thirds of local incomes
The most overvalued markets to purchase a home tend to be in California, but also include Seattle, Washington, and “Zoom towns” such as Boise, Idaho, and Greeley, Colorado. The most overvalued markets to rent a home are mostly found in California and Florida. You’ll pay the most to buy a median-price home versus renting a home in California, as well as MSAs in Oregon, Washington, Colorado, Idaho and Utah.
Case-Shiller Index falls for fifth consecutive month, up 7.2 percent year-on-year
November 2022 marked the fifth consecutive month of declining home prices in the U.S. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 7.7% annual gain in November, down from 9.2% in the previous month. Before seasonal adjustment, the U.S. National Index posted a -0.6% month-over-month decrease in November.
Purchase loan applications fall 10 percent from previous week and 41 percent year-on-year
The Market Composite Index for mortgage applications decreased 9.0 percent on a seasonally adjusted basis from one week earlier, with purchase loans falling 10 percent (and down 41 percent year-on-year) and refinance activity falling 7 percent (and down 80 percent year-on-year). The adjustable-rate mortgage (ARM) share of activity increased to 6.7 percent of total applications. The average contract interest rate for 30-year fixed-rate mortgagesdecreased to 6.19 percent from 6.20 percent.