According to Fannie Mae’s April 2013 National Housing Survey results, 52% of consumers surveyed expect home prices to increase compared to 32% surveyed last year.
The Core Logic Home Price Index, which includes distressed sales increased by 10.5% in March 2013 compared to March 2012. The rise was the biggest year-over-year gain since March 2006.
Foreclosure Filings Low
Total foreclosure filings, as per the RealtyTrac April 2013 Foreclosure Report, including default notices, scheduled auctions and bank repossessions were reported on 144,790 U.S. properties in April, down 23% on a year-over-year basis. Total foreclosure activity in April was at the lowest level since February 2007, a 74-month low. However, foreclosure starts increased on a monthly basis in 22 states, including in New Jersey, Connecticut, Texas, Georgia, Oregon, and California.
Federal Reserve Board Governor Elizabeth A. Duke’s speech on the mortgage market and housing conditions highlighted that the prices of existing homes are rising and capacity constraints are still a factor in lending industry with voluminous refinancing transactions.
Trulia’s April Home Price Monitor report shows yearly asking prices rose by 8.3% nationwide. Higher price gains were noted in regions with higher job growth.
The correlation between job growth and home price growth is 0.4 and is statistically significant.
Freddie Mac’s 30-year fixed-rate mortgage averaged 3.42%, and 15-year FRM this week averaged 2.61% for the week ending May 9, 2013.