Majority Of Markets Returning To Normal

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Freddie Mac’s Multi-Indicator Market Index monitors the stability of the housing market by comparing current conditions to long-term normals in categories such as applications to buy homes, payment-to-income ratios, on-time mortgage payments, and the job market. According to its most recent release, nearly 80 percent of the nation’s housing markets are stabilizing. In fact, 38 of 50 states are now showing an improving three-month trend and 40 of 50 metropolitan areas are also showing gains. Len Kiefer, Freddie Mac’s deputy chief economist, said local housing markets are getting back on track. “The national MiMi improved for the fourth consecutive month,” Kiefer said. “We’ve even seen the purchase application indicator increase 0.07 percent on a year-over-year basis. Low mortgage rates and moderating house price growth are helping to keep payment-to-income ratios favorable for the typical family in most of the country. And, of course, labor markets are generally improving.” Still, despite recent improvements and an optimistic outlook for the housing market’s immediate future, Freddie Mac’s index has only registered a 31 percent rebound from its all-time low in October 2010. More here.

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