Mortgage Rates

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Mortgage rates for Texas homebuyers

Single-Family Housing Permits & Starts Still Stagnating

The Census Bureau reported permits and starts numbers for May which were less than impressive. While permits were up from revised April figures, they were still lower than levels seen last year. Single-family permits (one unit structures) were down 3.3 percent from the same time a year ago. The sluggish numbers for housing permits and starts in May is a bit surprising to some of the experts considering the recent plunge in mortgage interest rates. Unfortunately there is more to the demand for new homes than just ultra low interest rates. Housing starts in May [...]

Denton County Home Sales Climb In May, City of Denton Sees All-Time High For Prices

Denton County home sales rose 3 percent compared to the same month last year, driven by a the precipitous drop in mortgage rates which are now back below a 4-handle. The increase in home sales this spring has offset the weak start to the year during the first quarter. The average price of a Denton County home was roughly $368,525 in May, up 4 percent from prices last year. The inventory of homes for sale in Denton County rose 25 percent, hitting 3.4 months of supply. New home sales continued to fare better than the [...]

Stagnating Home Sales, Mortgage Rates & Job Growth But The Fed Only Has Eyes For Wall Street

Home sales are stagnating, mortgage rates are falling and job growth is now waning. What's not to love? Today's nonfarm payrolls report was a resounding thud with only 75,000 jobs added in May. Previous months were revised downward as well. Everywhere you look, cracks are beginning to appear in the carefully varnished edifice the Federal Reserve likes to call an economy. Maybe this is why there were 13 Federal Reserve officials hitting the airwaves this week to talk up their most favored metric of economic validation, the U.S. stock market. Earlier in the week we [...]

Denton County Employment Growth Still Solid, Why Are Home Sales Stagnating?

Denton County employment growth is still humming along. The Dallas-Fort Worth area continues to add jobs. Even with the job growth, home price gains in the DFW area continue to slow. This is confirmed in the recent numbers from Case-Shiller. Along with many professional PhD economists, the Case-Shiller committee seems to be puzzled that the housing market isn't firing on all cylinders given the recent plunge in mortgage interest rates. "Given the broader economic picture, housing should be doing better." Even Freddie Mac's deputy chief economist seems to be perplexed that the housing market isn't [...]

New Home Sales Jump 7 Percent In April But Momentum Is Fading

The Census Bureau reported new home sales in April which rose 7 percent compared to the same time a year ago. Sales (contract signings) for April posted at a seasonally adjusted annual rate of 673,000 units. This was close to expectations, but interestingly the April figure represented a rather large 7 percent drop from revised March numbers. The sales numbers for the previous three months were revised higher. The median price of a new home rose in April to $342,200, while the average price of a new home contracted in April rose to $393700. This [...]

Existing Home Sales Decline For 14th Consecutive Month

The National Association of Realtors reported existing home sales for April which came in short of expectations. Existing sales in April posted at a seasonally adjusted annual rate of 5.19 million units. This was 0.4 percent lower than March and 4.4 percent lower than April of 2018. According to NAR the median price of an existing home rose 3.6% in April to $267,300. The average price of an existing home in the U.S. rose 2.5% to $305,200. The inventory of existing homes for sale in April stood at 4.2 months, up 5% from a year [...]

Home Builder Confidence Not Confirmed By Housing Starts & Permits Data

This week the National Association of Home Builders reported improved confidence and business conditions among new home builders. With the big drop in mortgage interest rates, builders have been enjoying solid sales so far in 2019. NAHB chairman, Greg Ugalde, even said as much... “Builders are busy catching up after a wet winter and many characterize sales as solid, driven by improved demand and ongoing low overall supply...However, affordability challenges persist and remain a big impediment to stronger sales.” With mortgage rates just above 4 percent, the year-over-year interest rate comparisons are very favorable for [...]

Denton County Home Sales Continue Spring Rebound In April

Denton County home sales enjoyed a continued spring rebound in April as low mortgage rates fueled strong demand for new homes and improved affordability for prospective buyers. Home sales in Denton County jumped 7 percent from the same time last year, better than the 3 percent gain seen in the DFW area during April. The average price of a Denton County home declined just slightly in April to roughly $358,000. Closings of new construction rose 13 percent while sales of used homes improved 6 percent. Home sales in the City of Denton rose about 2 [...]

DFW Contract Activity Cools In April As Stimulus From Lower Rates Fades

DFW contract activity faded in April. Looking at the preliminary sales data for North Texas, it is apparent that the stimulus from the big drop in mortgage rates has run its course. It will be another week or so before we get the official press release numbers, but the data is telling. April was another good month for home sales. Actual closings for home sales showed a robust real estate market in the Dallas-Fort Worth area, but contract signings were another matter. Preliminary sales data indicate that the DFW real estate market is peaking prematurely [...]

New Home Sales Improve On Lower Rates, Big Drop In Prices

According to the Census Bureau new home sales for March posted at a seasonally adjusted annual rate of 692,000, a 3 percent increase from the same time last year and 4.5 percent better than February sales numbers. Apparently the big drop in mortgage interest rates continued to provide some lift to the new home market in March. This confirms what we were seeing in the DFW market last month as new home sales outperformed the resale market. The supply of new homes stood at 5.0 months in March, up from 4.5 months a year ago. [...]