Housing Markets Continue to Show Stability

As more consumers catch up on their mortgage payments, employment progresses, and home prices rebound, the housing market continues to improve and exhibit more stability.

Freddie Mac's Multi-Indicator Market Index (MiMi) released Wednesday showed stabilization among the U.S. housing market, adding Rhode Island and four other metros (Philadelphia and Harrisburg, Pennsylvania; Phoenix, Arizona; and Albany, New York) to the outer range of stable housing activity.

The report indicated that the national MiMi value as of July 2015 reached 81, meaning that the market is on its outer range of stable housing activity.

This is an increase of 0.93 percent from June to July and a three-month improvement of 2.99 percent, Freddie Mac  said. The MiMi value has improved 6.17 percent from last July and has also rebounded 37 percent from the all-time low in October 2010, but is still under the high of 121.7.

"Nationally, all MiMi indicators are heading in the right direction for the second consecutive month and improving more than 6 percent from the same time last year," said Len Kiefer, Freddie Mac's deputy chief economist.

The key drivers of the positive MiMi value were the current on mortgage indicator (83.2 points) and the employment indicator (102.2 points), both fell in range and increased 0.59 percent and 0.50 percent, respectively.

The purchase applications indicator fell at 66 points in a weak position, but increased 1.32 percent from last month. The payment-to-income indicator also came in weak at 72.4 points, but also rose 1.59 percent from last month.

A total of 29 of the 50 states including the District of Columbia had MiMi values in the stable range, with the District of Columbia (103), North Dakota (97), Montana (93.7), Hawaii (93.5), and California and Utah tied at (90) occupying the top five spots. Meanwhile, 46 of the 100 metro areas have MiMi values that are stable, with Fresno (98.9), Austin (96.4), Honolulu (94.1), and Salt Lake City and Los Angeles tied at (92.9) occupying the top five spots.

Florida was the most improved state month-over-month (2.00 percent) and year-over-year (14.35 percent), Freddie Mac reported.

"Florida has some of the most improving housing markets in the country, largely a reflection of more borrowers becoming current on their mortgage payments as the local employment picture improves and house prices rebound," Kiefer said.

He added, "The one area of the country that has been slow to respond has been the Northeast. However, we've started to see these housing markets turn around, especially in Pennsylvania, Connecticut, New Hampshire, Vermont and Maine. While many of the locals markets in the Northeast are still weak, they're steadily trending in the right direction and their pace of improvement is accelerating. Overall, the West remains especially strong, with many markets posting double-digit growth in their MiMi purchase applications indicator compared to a year ago and helping to keep the country on pace for the best year of home sales since 2007."

Click here to view Freddie Mac's Multi-Indicator Market Index.