MCLEAN, VA – Freddie Mac released its Multi-Indicator Market Index (MiMi), showing that many of the nation’s housing markets continue to improve with one more state, Michigan, returning to its historical benchmark level of housing activity.

The national MiMi value stands at 83, indicating a housing market that’s on the outer range of its historic benchmark level of housing activity, and small changed with a +0.36 percent improvement from January to February and a three-month improvement of +1.05 percent. But, on a year-over-year basis, the national MiMi value has improved +7.46 percent. Since its all-time low in October 2010, the national MiMi has rebounded 40 percent, but remains significantly off from its high of 121.7. 

News Facts:

Thirty-five of the 50 states plus the District of Columbia have MiMi values within range of their benchmark averages, with the District of Columbia (101.7), North Dakota (95.3), Hawaii (95.2), Montana (94.8) and Utah (94.6) ranking in the top five.

Fifty-nine of the 100 metro areas have MiMi values within range with Austin, TX (100.5), Denver, CO (100.8), Salt Lake City, UT (97.7), Honolulu, HI (97.4), and Los Angeles, CA (97.0) ranking in the top five.

The most improving states month over month were Tennessee (+1.93%), Mississippi (+1.46%), Texas (+1.11%), Oregon (+1.08%) and Nevada (+0.91%). On a year-over-year basis, the most improving states were Colorado (+15.54%), Florida (+15.33%), New Jersey (+14.37%), Oregon (+14.30%), and Nevada (+14.24%).

The most improving metro areas month over month were Youngstown, OH (+3.55%), Memphis, TN (+2.54%), Jackson, MS (+1.82%), Knoxville, TN (+1.58%) and Dallas, TX (+1.43%). On a year-over-year basis, the most improving metro areas were Orlando, FL (+19.88%), Denver, CO (+19.01%), Tampa, FL (+18.36%), Cape Coral, FL (+18.07%), and Portland, OR (+16.85).

In February, 36 of the 50 states and 68 of the top 100 metros were showing an improving three-month trend. The same time last year, 21 of the 50 states, and 69 of the top 100 metro areas were showing an improving three-month trend.

Freddie Mac Deputy Chief Economist Len Kiefer stated, “The U.S. housing market is poised to have its best year in a decade. The National MiMi currently stands at 83, the highest since September of 2008. And the trends are nearly all positive. Home buy applications are headed higher, with the National MiMi buy applications indicator increasing nearly 12 percent from one year ago. The mortgage delinquency crisis is not completely behind us, but delinquencies are generally trending down, with the National MiMi current on mortgage indicator at 85.5, the highest reading since August 2008. Robust employment growth has helped drive the National MiMi employment indicator above its historic benchmark, and stands at 106.5, up nearly 6 percent from a year ago. The National MiMi payment-to-income indicator did fall 2.76 percent from the previous month due to lower mortgage interest rates. Lower rates are helping to support homebuyer affordability across the country, for the moment outweighing the impact of higher house prices.”

Kiefer  continued, “The national trends largely hold up across the country. We still see pockets of weakness in the Midwest and South, while the Northeast and West are generally doing better. But most markets in the Midwest and South are improving according to MiMi. For example, Michigan’s MiMi reading increased 7.49 percent year-over-year in February, moving within range of its historic benchmark.”

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NEW YORK, NY – Mortgage rates increased for a second consecutive week, with the benchmark 30-year fixed mortgage rate climbing to 3.83 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.16 discount and origination points.

The larger jumbo 30-year fixed jumped to 3.76 percent, and the average 15-year fixed mortgage increased to 3.05 percent. Adjustable mortgage rates were higher as well, with the 5-year ARM rising to 3.21 percent and the 7-year ARM moving higher to 3.44 percent.   

Mortgage rates went higher for a second week in a row, rising to a one-month high. The movement occurred in the run-up to the Federal Open Market Committee meeting as investors hedged against the possibility of stronger hints from the Fed about coming interest rate hikes. That didn’t happen, and nearly immediately bond yields started to retrace their steps. Mortgage rates are closely related to yields on long-term government bonds. With the Fed playing it close to the vest about their interest rate intentions, the likelihood is that low rates will be around a while longer. This should keep a lid on mortgage rates, and may push them down further, amid the flurry of economic activity in the week ahead.

At the current average 30-year fixed mortgage rate of 3.83 percent, the monthly payment for a $200,000 loan is $935.33. 

SURVEY RESULTS

30-year fixed: 3.83% — up from 3.75% last week (avg. points: 0.16)

15-year fixed: 3.05% — up from 3.00% last week (avg. points: 0.16)

5/1 ARM: 3.21% — up from 3.13% last week (avg. points: 0.18)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets.

For a full analysis of this week’s go in mortgage rates, go to www.bankrate.com

The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. There is no consensus feeling this week with 46 percent predicting mortgage rates will tumble. The remaining respondents are evenly divided, with 27 percent forecasting further increases and 27 percent expecting mortgage rates to remain more or less unchanged in the coming week.

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