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KCM Dec Market Update

Page 1

December 2023


Most agents know what’s happening. Good agents understand what’s happening. Great agents can explain what’s happening.


2024 Forecasts


2024 Home Price Forecasts Percent Appreciation/Depreciation as of 11/30/2023

4.1 2.8

2.6

2.2

1.5

1.9 0.7 -0.2

-1.7 Average of All 8

MBA

Fannie Mae Freddie Mac

HPES

Goldman Sachs

NAR

Zillow

Realtor.com


2024 Total Home Sales Forecasts Combined Existing and New Home Sales as of 11/30/2023

5.1

Average of All 3

5.5

NAR

5.1

MBA

4.7

Fannie Mae


Mortgage Rates November 30, 2023


Mortgage Rates Drop for the Fifth Consecutive Week July 2023 – Today

7/6/2023

7/27/2023

8/17/2023

9/7/2023

9/28/2023

10/19/2023

7.22

11/9/2023

7.29

7.44

7.5

7.76

7.79

7.63

7.57

7.49

7.31

7.19

7.18

7.12

7.18

7.23

7.09

6.96

6.9

6.81

6.78

6.96

6.81

U.S. Weekly Averages as of 11/30/2023

11/30/2023

Source: Freddie Mac


Buyer Demand


Showing Traffic Above Pre-Pandemic Numbers Showing Index for September

153

103.7

2016

111.3

106.9

2017

2018

112.2

2019

2023 Source: ShowingTime


Despite mortgage rates reaching 23-year highs, low inventory levels are spurring surprisingly strong competition . . . Depleted inventory stocks are gradually recovering, and price appreciation is slowing, but demand has remained resilient, and attractive, appropriately priced listings are moving quickly. - Zillow, Latest Market Report, 11/13/2023


Buyers and sellers remain active in every economic environment, including when mortgage rates are high. Buyers determined to find a home they love will continue visiting homes with their agents, and as we mentioned previously, some sellers are reducing prices, which presents an opportunity for those buyers. - Mike Lane, Vice President, ShowingTime


Affordability


Mortgage Payment to Income Ratio (2000-2023) Assumes a 30-Year Fixed Rate Mortgage With a 20% Down Payment on a Median-Priced Home With a Median Income (P&I Payment to Income) 27.3% Today

30

24.7% July 2006

25

25%

26.5% Jun 2022 18.1%

20

June 2018

19.6%

15

Jan 2000

13.3% 10

11.6%

Jan 2021

Jan 2013

5

0 Source: NAR


Percent Change in Home Prices Since Quarter 1 1991, Quarter 3 2023

Source: FHFA


Average Number of Offers Received on the Most Recent Closed Sale Each October

3.4

2.1

2.0

2018

2019

2020

3.7

2021

2.4

2.5

2022

2023 Source: NAR


Median Days on the Market Less Than PreUnicorn Years Each October

68

64

64 51

50

50

2022

2023

43

2017

2018

2019

2020

2021

Source: Realtor.com


Inventory


Active Listing Count November of Each Year

1,227,700

1,272,566

1,142,966

754,846

2017

2018

2019

2023 Source: Realtor.com


New Listings Stabilizing Monthly Counts 2017

650,000

2018

2019

2020

2021

2022

2023

600,000

550,000

500,000

450,000

400,000

350,000

300,000

250,000

200,000

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source: Realtor.com


New Listings Break the Norm Month-Over-Month Change, November of Each Year

17,366

-2,569

-31,628

-59,013

2017

-50,244

-53,466

2020

2021

-65,035

2018

2019

2022

2023 Source: Realtor.com


Change in Inventory Year-Over-Year, November 2023

Source: Realtor.com


Change in Inventory Month-Over-Month, November 2023

Source: Realtor.com


Listing Opportunities


Percent of Sellers Who Moved at Least 100 Miles (By Age) 47%

28%

18-34

45%

45%

65-74

75 or Older

32% 25%

35-44

45-54

55-64

Source: NAR’s 2023 Profile of Home Buyers and Sellers


Top 5 Reasons Why Sellers Sold Moved at Least 100 Miles

Want To Move Closer to Friends or Family

74%

Moving Due to Retirement

31%

Job Relocation

33%

Change in Family Situation (Marriage, Divorce)

12%

Neighborhood Became Less Desirable

12% Source: NAR’s 2023 Profile of Home Buyers and Sellers


Number of Weeks Sold Home Was on the Market Percent Distribution Median Weeks: 2 weeks 43%

15%

12% 7%

6%

3%

4%

3%

4%

2%

1%

*

Less 1 to 2 3 to 4 5 to 6 7 to 8 9 to 10 11 to 12 13 to 16 17 to 24 25 to 36 37 to 52 53 or Than Weeks Weeks Weeks Weeks Weeks Weeks Weeks Weeks Weeks Weeks More 1 Week Weeks * Less than 1 Percent

Source: NAR’s 2023 Profile of Home Buyers and Sellers


Home Prices


Percent Change in Home Values Month-Over-Month Case-Shiller 0.5

0.7

0.2

0.4

0.5

0.6

0.8

0.8

0.7

0.9

0.7

0.8

0.7

0.6

0.4

0.4

0.3

Jul

Aug

Sep

0.6

-0.2

FHFA 0.1

CoreLogic

1.6 0.8

1.2

0.5

1.6 0.9

-0.2

Jan '23

Feb

Mar

Apr

May

Jun


Stabilizing at About 1 of 4 on Prices Falling Percent of Americans Who Think Prices Will Go Down over the Next 12 Months

37%

35% 31% 32% 28%

Jan 2023

Feb

Mar

Apr

May

26%

Jun

24%

Jul

26% 23% 23% 23%

Aug

Sep

Oct

Nov

Source: Fannie Mae


~ 1 of 4 Still Believe Prices Will Depreciate


49-Year Average Monthly Price Movement Month-Over-Month, 1973-2022

0.86

0.88 0.79

0.64

0.64

0.44

0.25

0.25 0.15

0.12

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

0.10

0.12

Nov

Dec

Source: Case-Shiller


49-Year Average vs. 2023 Price Movement Month-Over-Month, 1973-2022 and 2023

49-Year Average 2023

1.5

1.3

1.2 0.86

0.88

0.9 0.79

0.64

0.64 0.6 0.44 0.4

0.30

0.25 0.3

0.2 0.10

-0.5

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Source: Case-Shiller


2023 Year-End Home Price Forecasts 6.7% 6%

5.7%

5.5%

4.6% 3.3%

0.1% Average of All 6

Fannie Mae

AEI

MBA

Zillow

HPES

NAR


Vitally Important


90-Day Work Plan

▪ Price Adjustments on Yours ▪ Price Adjustments on Theirs ▪ FSBOs ▪ Prospect! Prospect! Prospect!


If your listing hasn’t sold in the last 60 days, MAYBE…


FSBOs & Expired Listings


THE

DEEP DIVE

Facebook Live Every Monday 11AM ET/8AM PT Keeping Current Matters Facebook Page


Resources Slide(s)

Description

Link(s)

4

2024 Home Price Forecasts Graph

https://www.zillow.com/research/2024-housing-predictions33447/ https://www.realtor.com/research/2024-national-housingforecast/ https://twitter.com/NewsLambert/status/1730642488346472 787 https://www.mba.org/docs/default-source/research-andforecasts/forecasts/2023/mortgage-finance-forecast-nov2023.pdf?sfvrsn=acef26ff_1 https://pulsenomics.com/surveys/ https://www.fanniemae.com/media/49661/display https://www.freddiemac.com/research/forecast/20231121economic-growth-remained-strong-in-q3

5

2024 Total Home Sales Forecasts Graph

https://www.mba.org/docs/default-source/research-andforecasts/forecasts/2023/mortgage-finance-forecast-nov2023.pdf?sfvrsn=acef26ff_1 https://www.fanniemae.com/media/49661/display

7

Mortgage Rates Drop Graph

https://freddiemac.gcs-web.com/node/28016/pdf


Resources Slide(s)

Description

Link(s)

9

Showing Traffic Graph

https://www.showingtime.com/showingtime-showing-index/

10

Zillow Quote

https://zillow.mediaroom.com/2023-11-13-Buyer-demandhanging-tough,-despite-rates-and-seasonal-cooldown

11

Mike Lane Quote

https://www.showingtime.com/blog/september-2023showing-index-results/

13

Mortgage Payment to Income Graph

https://cdn.nar.realtor//sites/default/files/documents/hai-082023-housing-affordability-index-2023-10-13.pdf

14

Home Prices Map

https://www.fhfa.gov/DataTools/Tools/Pages/House-PriceIndex-(HPI).aspx

15

Closed Sale Offers Graph

https://www.nar.realtor/research-and-statistics/researchreports/realtors-confidence-index https://cdn.nar.realtor/sites/default/files/documents/2023-10realtors-confidence-index-11-21-2023.pdf

16

Median Days on the Market Graph

https://www.realtor.com/research/data/


Resources Slide(s)

Description

Link(s)

18

Active Listing Count Graph

https://www.realtor.com/research/data/

19, 20

New Listings Graphs

https://www.realtor.com/research/data/

21, 22

Inventory Maps

https://www.realtor.com/research/data/

24, 25

NAR Sellers Graphs

https://www.nar.realtor/research-and-statistics/researchreports/highlights-from-the-profile-of-home-buyers-andsellers

26

Weeks Home Was on the Market

https://www.nar.realtor/research-and-statistics/researchreports/highlights-from-the-profile-of-home-buyers-andsellers

Percent Change Home Values Combo Graph

https://www.spglobal.com/spdji/en/indices/indicators/spcorelogic-case-shiller-us-national-home-price-nsaindex/#news-research https://www.fhfa.gov/DataTools/Downloads/Pages/HousePrice-Index.aspx https://www.corelogic.com/category/intelligence/reports/ho me-price-insights/

28


Resources Slide(s)

Description

Link(s)

29

1 of 4 Think Prices are Falling Graph

https://www.fanniemae.com/research-and-insights/surveysindices/national-housing-survey/national-housing-surveyarchive

49-Year Average Graphs

https://www.spglobal.com/spdji/en/indices/indicators/spcorelogic-case-shiller-us-national-home-price-nsaindex/#overview

Year-End Home Price Forecasts Graph

https://www.zillow.com/research/data/ www.mba.org https://www.fanniemae.com/research-and-insights/forecast https://www.aei.org/research-products/report/housingfinance-watch-week-37-2023/ www.nar.realtor www.pulsenomics.com

31, 32

33


Updates


Resources Slide(s)

Description

Link(s)

47

Confidence Index

https://www.nar.realtor/research-and-statistics/researchreports/realtors-confidence-index

48-50, 57, 59, 60, Existing Home Sales 67-70

https://www.nar.realtor/topics/existing-home-sales

51-53

New Home Sales

http://www.census.gov/construction/nrs/pdf/newressales.pdf http://www.census.gov/newhomesales

54

Total Home Sales

http://www.census.gov/construction/nrs/pdf/newressales.pdf https://www.nar.realtor/topics/existing-home-sales

55-56

Pending Home Sales

https://www.nar.realtor/research-and-statistics/housingstatistics/pending-home-sales

61-63

Case Shiller

https://www.spglobal.com/spdji/en/indices/indicators/spcorelogic-case-shiller-20-city-composite-home-price-nsaindex/#news-research

64

CoreLogic Price Forecast

https://www.corelogic.com/intelligence/u-s-home-priceinsights/


Resources Slide(s)

Description

Link(s)

66-72

Inventory

https://www.nar.realtor/topics/existing-home-sales http://www.census.gov/construction/nrs/pdf/newressales.pdf https://www.realtor.com/research/data/

74

Showing Activity

https://www.showingtime.com/blog/

Mortgage Rates

http://www.freddiemac.com/pmms/pmms_archives.html http://www.freddiemac.com/research/forecast/ https://www.mba.org/news-research-andresources/research-and-economics/forecasts-andcommentary

Mortgage Rate Projections

http://www.fanniemae.com/portal/researchinsights/forecast.html https://www.mba.org/news-research-andresources/research-and-economics/forecasts-andcommentary https://www.nar.realtor/research-and-statistics

Mortgage Credit Availability

https://www.mba.org/news-research-andresources/newsroom https://www.mba.org/news-research-andresources/research-and-economics/single-familyresearch/mortgage-credit-availability-index

76, 77, 79, 80

78

82, 83


Home Sales


Jan-19 Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan-20 Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan-21 Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan-22 Feb Mar Apr May June July Aug Sept Nov Dec Jan-23 Feb Mar Apr May June July Aug Sept Oct

Average Days on the Market

October 2023 49

46 44 4141

38

36 36

29

26

24 27 36 33

29 27 26

24 2222

21212121 20 18

171717171717 1818 1919 18 19

1717 16 34

3131 29

26

24 22 23

2020

21

1818

16

1414

Source: NAR


Existing Home Sales Since January 2014 6,800,000

6,300,000

5,800,000

5,300,000

4,800,000

4,300,000

3,800,000

Jan 2014

Jan 2015

Jan 2016

Jan 2017

Jan 2018

Jan 2019

Jan 2020

Jan 2021

Jan 2022

Jan 2023

Source: NAR


Existing Home Sales Year-Over-Year, by Region U.S.

Northeast

Midwest

South

West

-13.9%

-14.6%

-14.6% -14.8%

-15.8%

Source: NAR


Existing Home Sales In Thousands 2021

2022

January

February

2023

600

500

400

300

200

100

0 March

April

May

June

July

August

September

October

November December

Source: NAR


New Home Sales Annualized in Thousands 1060

960

860

760

660

560

460

360 jun-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Jan-20

Jan-21

Jan-22

Jan-23

Source: Census


New Home Sales Percent of Distribution by Price Range * Less Than 500 Units or Less Than 0.5 Percent

17%

10%

11%

7% 5%

*

*

0% Under $150K

$150-$199K

$200-299K

$300-$399K

$400-$499K

$500-$749K

Over $750K Source: Census


Jan-19 Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan-20 Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan-21 Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan-22 Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan-23 Feb Mar Apr May June July Aug Sept Oct 1.5 1.5 1.7 1.9

1.9

2.4 2.6 2.7 2.5 2.8 2.6 2.3 2.3 2.4 2.5

2.4

2.8 2.9

3.2

3.1 2.9 2.8 2.7

2.5

3.2

3.5 3.5

3.6

3.7

3.6

3.6 3.6 3.4 3.5 3.6 3.4 3.2 3.5 3.1 3.2 3.0 3.4 3.4 3.4 3.3 3.6

3.2

4.1 4.5

4.5

4.2 4.3 4.5 4.5 4.2 4.0

5.1 4.9

New Homes Selling Fast

Median Months from Completion to Sold

Source: Census


Total Home Sales In Thousands 2021

2022

2023

676 646 567

604

593

587

557

524

436 423

577

575

574

557

528

517 475

443 422

631

491

495

477 454

432

421

404

397

419 384

372

374

325 286

January

February

March

April

May

June

July

August

September

October

November December

Source: Census


Pending Home Sales 140

130

120

110

100

100 = Historically Healthy Level 90

80

70

60January 2012

January 2013

January 2014

January 2015

January 2016

January 2017

January 2018

January 2019

January 2020

January 2021

January 2022

January 2023

Source: NAR


Pending Home Sales Year-Over-Year by Region U.S.

Northeast

Midwest

South

West

100 = Historically Healthy Level -6.5%

-7.1% -8.5% -10.3%

-10.8%

Source: NAR


Percentage of Distressed Property Sales Distressed Sales (Foreclosures and Short Sales) Represented 2% of sales in October. 35%

30%

25%

20%

15%

10%

5%

4% 0% Jan 2012

Jan 2013

Jan 2014

Jan 2015

Jan 2016

Jan 2017

Jan 2018

Jan 2019

Jan 2020

Jan 2021

Jan 2022

Jan 2023

Source: NAR


Home Prices


Sales Price of Existing Homes Year-Over-Year, by Region 7.5%

4.2%

3.5% 3.4% 2.3%

U.S.

Northeast

Midwest

South

West Source: NAR


% Change in Sales Year-Over-Year, by Price Range -0.6%

-7.1%

-13.0%

-13.5%

-12.3%

-23.1%

% change in sales

$0-100K -13.5%

$100-250K -23.1%

$250-500K -13.0%

$500-750K -12.3%

$750K-1M -7.1%

$1M+ -0.6% Source: NAR


Change in Home Prices Year-Over-Year 20%

15%

10%

5%

0%

Jun 2012

Jan 2013

Jan 2014

Jan 2015

Jan 2016

Jan 2017

Jan 2018

Jan 2019

Jan 2020

Jan 2021

Jan 2022

Jan 2023

Source: S&P Case-Shiller


Change in Home Prices Year-Over-Year, 20 City Composite 20%

15%

10%

5%

0%

Source: S&P Case-Shiller


Change in Home Prices Year-Over-Year, 20 City Composite 21.1% 21.2%

20.5% 18.7%

16.0%

13.1%

10.4% 8.6% 6.8% 4.6% 2.6%

1.0% Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec Jan 2023 Feb

1.6% 1.7% 1.5%

Mar

Apr

May

0.9% 0.6% June

July

0.4% 0.2% Aug

Sept

Source: S&P Case-Shiller


Year-Over-Year % Change in Price US Home Price Insights – September 2023

4.5%

2.6%

Current

Forecast Source: CoreLogic


Housing Inventory


Change in Inventory Month-Over-Month, November 2023

Source: Realtor.com


Months Inventory of Homes for Sale 2011 - Today 9.5

8.5

7.5

6.5

5.5

4.5

3.5

2.5

1.5January 2011

January 2012

January 2013

January 2014

January 2015

January 2016

January 2017

January 2018

January 2019

January 2020

January 2021

January 2022

January 2023

Source: NAR


2.0 2.1 1.7 1.6 1.7 1.9 2.2

2.6 2.6

2.6

2.5 2.5 2.6 2.6 2.4 2.4

2.3

2.3

2.7

2.5 3.3 3.3 3.4

3.2 3.2 3.2 3.3 3.3

2.9 3.0 3.1

2.9 2.9

2.9

3.1 3.0

3.3

3.6

3.7

3.9

4.0

4.0 4.0 3.9

4.2 4.3 4.3 4.2

4.6

4.5

1.9 1.9 2.0 2.1

2.5

3.0 3.8

3.8

4.0

3.0 3.1 3.1

3.5 3.6

Months Inventory of Homes for Sale

Since 2019 6.0

5.5

5.0

1.5

Source: NAR


Year-Over-Year Inventory Levels 30%

20%

10%

0%

-10%

-20%

-30% January 2014

January 2015

January 2016

January 2017

January 2018

January 2019

January 2020

January 2021

January 2022

January 2023

Source: NAR


Year-Over-Year Inventory Levels Last 12 Months

15.3%

15.3%

10.2%

5.4% 2.7% 1.0% Oct

-0.8%

Nov

Dec

Jan-23

Feb

Mar

May

June

July

Aug

Sept

Oct

Apr

-5.7%

-6.1% -8.1%

-13.6%

-14.6%

-14.1%

Source: NAR


New Home Monthly Inventory Seasonally Adjusted, Last 13 Months

9.7

9.7

9.4 8.5 8.1

8.4

8.1 7.6 7.2

Sept

Oct

Nov

Dec

Jan 23

Feb

Mar

Apr

May

7.8

7.5

7.2

7.1

June

July

7.8

Aug

Sept

Oct

Source: Census


New Home Monthly Inventory Non-Seasonally Adjusted 2022 2023

11.4 10.9

10.7 10.4

9.7

9.5 9.2 8.8 8.3 7.9 7.6

7.6 6.9

7.8

7.6

7.4

7

7.2

6.3 5.9 5.6

Jan

5.5

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

Source: Census


Buyer Demand


Home Showings Declined Compared to August Numbers, but Still Remain Above Pre-Pandemic Levels Year-Over-Year Increase in Showing Activity, September 2023

Michael Lane, Vice President & General Manager, Showing Time “Buyers and sellers remain active in every economic environment, including when mortgage rates are high. . . . Buyers determined to find a home they love will continue visiting homes with their agents, and as we mentioned previously, some sellers are reducing prices, which presents an opportunity for those buyers.” 9.1%

9.7%

5.5% 3.3% 0.7% U.S.

Northeast

Midwest

South

West Source: ShowingTime


Mortgage Rates


2.0 1/4/2018 2/1/2018 3/1/2018 3/29/2018 4/26/2018 5/24/2018 6/21/2018 7/19/2018 8/16/2018 9/13/2018 10/11/2018 11/8/2018 12/6/2018 1/3/2019 1/31/2019 2/28/2019 3/28/2019 4/25/2019 5/23/2019 6/20/2019 7/18/2019 8/15/2019 9/12/2019 10/10/2019 11/7/2019 12/5/2019 1/2/2020 1/30/2020 2/27/2020 3/26/2020 4/23/2020 5/21/2020 6/18/2020 7/16/2020 8/13/2020 9/10/2020 10/8/2020 11/5/2020 12/3/2020 12/31/2020 1/28/2021 2/25/2021 3/25/2021 4/22/2021 5/20/2021 6/17/2021 7/15/2021 8/12/2021 9/9/2021 10/7/2021 11/4/2021 12/2/2021 12/30/2021 1/27/2022 2/24/2022 3/24/2022 4/21/2022 5/19/2022 6/16/2022 7/14/2022 8/11/2022 9/8/2022 10/6/2022 11/3/2022 12/1/2022 12/29/2022 1/26/2023 2/23/2023 3/23/2023 4/20/2023 5/18/2023 6/15/2023 7/13/2023 8/10/2023 9/7/2023 10/5/2023 11/02/2023 11/30/2023

Mortgage Rates

30-Year Fixed Rate, January 2018–Today 7.22%

8.0

7.5

7.0

6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

2.5

Source: Freddie Mac


2.0 1/7/2016 2/7/2016 3/7/2016 4/7/2016 5/7/2016 6/7/2016 7/7/2016 8/7/2016 9/7/2016 10/7/2016 11/7/2016 12/7/2016 1/7/2017 2/7/2017 3/7/2017 4/7/2017 5/7/2017 6/7/2017 7/7/2017 8/7/2017 9/7/2017 10/7/2017 11/7/2017 12/7/2017 1/7/2018 2/7/2018 3/7/2018 4/7/2018 5/7/2018 6/7/2018 7/7/2018 8/7/2018 9/7/2018 10/7/2018 11/7/2018 12/7/2018 1/7/2019 2/7/2019 3/7/2019 4/7/2019 5/7/2019 6/7/2019 7/7/2019 8/7/2019 9/7/2019 10/7/2019 11/7/2019 12/7/2019 1/7/2020 2/7/2020 3/7/2020 4/7/2020 5/7/2020 6/7/2020 7/7/2020 8/7/2020 9/7/2020 10/7/2020 11/7/2020 12/7/2020 1/7/2021 2/7/2021 3/7/2021 4/7/2021 5/7/2021 6/7/2021 7/7/2021 8/7/2021 9/7/2021 10/7/2021 11/7/2021 12/7/2021 1/7/2022 2/7/2022 3/7/2022 4/7/2022 5/7/2022 6/7/2022 7/7/2022 8/7/2022 9/7/2022 10/7/2022 11/7/2022 12/7/2022 1/7/2023 2/7/2023 3/7/2023 4/7/2023 5/7/2023 6/7/2023 7/7/2023 8/7/2023 9/7/2023 10/7/2023 11/7/2023

Mortgage Rates

30-Year Fixed Rate, January 2016–Today 8.0

7.22%

7.5

7.0

6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

2.5

Source: Freddie Mac


Mortgage Rate Projections December 2023

Quarter

Fannie Mae

MBA

NAR

Average of All Three

2023 Q4

7.70%

7.50%

7.80%

7.67%

2024 Q1

7.60%

7.10%

7.50%

7.40%

2024 Q2

7.40%

6.60%

6.90%

6.97%

2024 Q3

7.20%

6.30%

6.50%

6.67%


2.0 2019 1/31 3/7 4/4 5/2 6/6 7/3 8/1 9/5 10/3 11/7 12/5 2020 2/6 3/5 4/2 5/7 6/4 7/2 8/6 9/3 10/1 11/5 12/3 2021 2/4 3/4 4/1 5/6 6/3 7/1 8/5 9/2 10/7 11/4 12/2 2022 2/3 3/3 4/7 5/5 6/2 7/7 8/4 9/1 10/6 11/3 12/1 1/5 2/2 3/2 4/6 5/4 6/1 7/6 8/3 9/7 10/5 11/9

Mortgage Rates

30-Year Fixed Rate 8.0

7.5

7.0

7.1 6.6

6.0

6.3

5.0

4.0

Where Are They Going?

3.0

January 2019 – Today Actual Interest Rates

2023 Q4 2024 Q1 2024 Q2 2024 Q3

Source: Freddie Mac, MBA


Mortgage Rates 30-Year Fixed Rate

- Actual - Projected

7.5

2023

7

6.5

6

2024 5.5

5

2019

4.5

2022 4

2018

2020

3.5

2021 3

2.5 Rate

2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 4.3

4.5

4.6

4.8

4.4

4

3.7

3.7

3.5

3.2

3.0

2.8

2.9

3.0

2.9

3.1

3.9

5.3

5.7

6.6

6.4

6.5

7.0

7.5

7.1

6.6

6.3

6.1

Source: MBA


Mortgage Credit Availability


Mortgage Credit Availability Index (MCAI) October 2023 190 180

170 160 150 140 130

120 110 100 90 Apr 2013

Jan 2014

Jan 2015

Jan 2016

Jan 2017

Jan 2018

Jan 2019

Jan 2020

Jan 2021

Jan 2022

Jan 2023

Source: MBA


Lending Standards Still Under Control Historic Data for the Mortgage Credit Availability Index (MCAI) 900

Housing Bubble: 868.7

800

700

600

500

400

300

200

98.2 100

0 June 2004

June 2006

June 2008

June 2010

June 2012

June 2014

June 2016

June 2018

June 2020

June 2022

October 2023

Source: MBA


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