U.S. Residential Housing Update

Market UpdateThe following information was distributed by:

Nicholas Michael Papajohn
Home Mortgage Consultant
Wells Fargo Home Mortgage

701 Westchester Avenue
White Plains , NY 10604
914-285-1477 Office Ext.
914-714-8433 (Mobile)
866-665-1535 (Fax)

NMLSR ID 404042

  • Existing home sales jumped 14.7% in December from November to reach a seasonally adjusted annual sales rate of 5.46 million units. Sales in 2015 numbered 5.23 million units, a 6.3% increase over 2014. 1
  • The months’ supply of existing homes dropped to 3.9 months, meaning that it would take just under four months to sell all the homes currently on the market at December’s sales rate. That’s the lowest monthly ratio of housing inventory to sales in more than ten years. During 2015, the average months’ supply was 4.8 months. 1
  • The median price of existing homes sold in 2015 was $219,900, a 6.4% increase over the $206,700 median price for 2014 sales.1
  • New home sales climbed 10.8% in December to a 544,000-unit annual sales rate. An estimated 501,000 new homes were sold in 2015, a 14.5% increase over sales of 437,000 units in 2014.2
  • The median sales price of new homes sold in 2015 was $293,600, a 3.8% increase over 2014’s $282,800 median price.2
  • Business investment has hovered near $70 billion per month since 2012, as measured by orders for capital goods excluding defense and aircraft. Orders for the fourth quarter of 2015 were 3.5% below orders for the same quarter a year earlier.3
  • The homeownership rate was 63.7% in the fourth quarter of 2015, up from 63.6% in the third quarter. A year ago, the rate stood at 63.9%.4
  • For households headed by an individual 35 years old or younger, the homeownership rate in 2015’s fourth quarter was 34.7%, down from 35.3% a year earlier. 4
  • The average rate on 30-year fixed-rate mortgages in Freddie Mac’s survey was 3.79% during the week ending January 28, down two basis points from the previous week. That’s four consecutive weeks of declines since the 4.01% average posted during the last week of 2015. The January average was 3.87%, down from December’s 3.96%. All rates quoted have fees and points averaging 0.6% to 0.7% of the loan amount.5