Freddie Mac’s Multi-Indicator Market Index (MiMi) fell in May, but on a year-over-year basis, the index was up 0.86 points. The slight decline is likely due to slow activity in mortgage applications. However, the Mortgage Bankers Association reported that mortgage applications have increased during July, with an increase of 2.4 percent for the week ending July 18, as compared to the week before.
Frank Nothaft, chief economist at Freddi Mac, points out that “when we look at other MiMi indicators outside of mortgage purchase applications, the news remains positive.” Nothaft notes that unemployment numbers have dropped, more people are paying their mortgages on time and mortgage rates are remaining at historic lows, which are all positive indicators.
“Moreover, while house price growth is moderating, many markets can still sustain additional house price gains while still maintaining strong homebuyer affordability,” continues Nothaft.
Freddi Mac is optimistic about the housing recovery continuing, but cautions that we should expect it to be at a slow pace until the labor market improves and consumers have more money in their pocket. However, it’s important that buyers and sellers alike aren’t alarmed at the fact that the market isn’t improving as quickly as it was last year. The important part is that they are continuing to recover.
While the housing market growth is slowing as it continues to climb towards normal market conditions, prospective buyers can still be encouraged by slowing price increases and interest rates that have remained at historic lows. If you are ready to begin the process of purchasing a new home in metro Atlanta, contact Academy Mortgage to learn about your mortgage options. You can reach Academy Mortgage’s Atlanta office by calling 404-713-8662 or visiting www.AcademyMortgage.com/Atlanta.
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