The updated Multi-Indicator Market Index® (MiMi®) shows that the U.S. housing market weakened slightly this month, which is no surprise considering the harsh winter and slowdown in economic activity at the outset of 2015. While single-family purchase applications dipped a bit across the board from December to January, they are still up nearly 3% from last year. Improving employment and attractive mortgage rates should help to support increased purchase applications, particularly as the weather warms up and we head into the spring homebuying season.
The good news is that mortgage delinquencies also continued their steady decline. The national MiMi current on mortgage indicator for January is up 10% from a year ago at 67.5, the highest level we've seen since in six years. The improvement in households paying their mortgages on time has been dramatic. For example, at its low point in February of 2010, California’s MiMi current on mortgage indicator was just 22.8. Since then, California has seen major improvements and today the current on mortgage indicator is 77.6, showing a 240% improvement from its low point and an 8.2% improvement from one year ago.
The national MiMi value stands at 74.6, indicating a weak housing market overall and showing a slight decline (-0.20%) from December to January and 3-month decline of (-0.37%). On a year-over-year basis, the U.S. housing market has improved (+3.39%). The nation’s all-time MiMi high of 121.7 was April 2006; its low was 57.4 in October 2010, when the housing market was at its weakest. Since that time, the housing market has made a 30% rebound.
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