“Housing today is not a bubble…There may be a bubble in the Fed, which is necessary to make what’s happening happening, a slow, soft increase in jobs and predictability. Housing is the best buy for the average American because they can vote with their feet. You can get a Fannie or Freddie loan, even on a second house, and if you have a FICO score and a $20,000 down payment, you can be in business.”
— Colony Capital CEO Tom Barrack in CNBC.
Housing Market Indicators
Total Existing Home Sales reported by National Association of Realtors rose by 12.9% in May 2013 to an annual rate of 5.18 million compared to May 2012 figure of 4.59 million. The national median existing home price for all housing types was $208,000 recording a yearly gain of 15.4%. Individual investors purchased 18 percent of homes in May.
The FNC Residential Price Index posted 0.7% monthly gain in April. This is the highest monthly rise since June 2012. The press release on the price index attributes the housing recovery to improved credit availability, low interest rates and low home prices.
The National Association of Builder’s Home Builder confidence index rose by 8 points to 52 in June on a month-over-month basis. The eight-point jump in the index was the biggest one-month gain since August and September of 2002.
Freddie Mac’s 30-year fixed-rate mortgage averaged 3.93%, and the 15-year FRM averaged 3.04%.