Intriguing numbers from our friends at Wells Fargo. Mortgage rates are one of the things really driving market velocity in the islands.Existing home sales rose 4.3% in October, its fifth consecutive
2020 Mortgage Update at Thanksgiving
Dated: November 25 2020
Intriguing numbers from our friends at Wells Fargo. Mortgage rates are one of the things really driving market velocity in the islands.
- Existing home sales rose 4.3% in October, its fifth consecutive monthly increase. The seasonally adjusted annualized rate of 6.85 million sales in October is 28% above last year’s pace, when 5.34 million existing homes were sold. Year-to-date, sales are up 2.4% relative to 2019.1
- The median price of existing homes sold in October was $313,000, up 15.5% from the median price of homes sold in October 2019.
- At the end of the month, 1.42 million existing homes were on the market, a drop of 19.8% from the inventory a year earlier. At October’s sales rate, the unsold inventory would sell out within 2.5 months, an all-time low point for the months’ supply figure. In October 2019, months’ supply stood at 3.9 months.1
- Housing starts rose 4.9% in October to a seasonally adjusted annual rate of 1.53 million units. Starts numbered 1.29 million units last year.2
- Single-family housing starts had its strongest month since April 2007, reaching an annualized rate of 1.179 million units in October. Year-to-date, single-family starts are up 6.0% over last year.2
- Employment rose by 638,000 positions in October to a total payroll of 142.4 million. That’s 10 million, or 6.6%, fewer jobs than were held in February. The unemployment rate fell to 6.9% from 7.9% in September.3
- Industrial production rose 1.1% in October, recovering from September’s 0.4% setback. Production at the nation’s factories, utilities, and mines remains 5.6% below its February 2020 level.4
- The Consumer Price Index showed no change in October and a 1.2% increase over the past year. Over the last five years, the CPI has grown at an average annual rate of 1.8%.5
- The Core CPI measure, which strips out the volatile food and energy sectors, also held steady in October, with a 1.6% gain over the past twelve months.5
- Retail sales rose 0.3% in October, decelerating from gains of 1.4% in August and 1.6% in September. Retail sales are up 5.7% over year-ago levels. The tab at the nation’s restaurants and bars during October slid 0.1% from September and stands 14.2% below the level in October 2019.6
- In the week ending November 14, 742,000 workers filed initial claims for unemployment insurance. The increase of 31,000 claims from the previous week ended a string of four consecutive weekly declines. The August weekly average was just over 1 million workers.7
- The average rate on 30-year fixed-rate mortgages in Freddie Mac’s survey hit another record low during the week ending November 19, dropping a dozen basis points to 2.72%. The rate has remained below 3.00% since the end of July and averaged 2.83% in October. All rates quoted have fees and points averaging 0.6% to 0.8% of the loan amount.
with the Fed stating interest rates are going to stay this low until 2023, buyers will be able to afford higher-priced homes than if the rates were higher!
Ron & Gwen Margolis have been serving families in their home buying and selling on the island of Kauai for 18 years. Listening to their clients and understanding their needs and priorities is key ....