MCLEAN, VA--(Marketwired - Oct 24, 2014) - Freddie Mac (
Quote attributable to Freddie Mac Chief Economist Frank Nothaft:
"The bleeding has stopped from the rate increases from a year ago which is reflected in the stable picture at the national level. Moreover, we've seen a pick-up in the number of states and metros improving at the local levels based on their three month trend pointing once again to more housing markets working their way back to the fundamentals which is reflected in the key indicators MiMi tracks each month."
Quote attributable to Freddie Mac Deputy Chief Economist Len Kiefer:
"The good news from MiMi this month is the improvement across more markets and not just the large markets like Los Angeles and New York which receive so much of the attention. In fact, we're beginning to see better signs on the purchase applications front in general. For example, the decline in the three month purchase application trend is slowing and in markets like Kansas City, Birmingham and Nashville it's actually showing a positive trend for purchase applications. In general, more homeowners are making timely mortgage payments, the employment picture is improving, and cheap mortgage rates are helping to support affordability."
MiMi monitors and measures the stability of the nation's housing market, as well as the housing markets of all 50 states, the District of Columbia, and the top 50 metro markets. MiMi combines proprietary Freddie Mac data with current local market data to assess where each single-family housing market is relative to its own long-term stable range by looking at home purchase applications, payment-to-income ratios (changes in home purchasing power based on house prices, mortgage rates and household income), proportion of on-time mortgage payments in each market, and the local employment picture. The four indicators are combined to create a composite MiMi value for each market. Monthly, MiMi uses this data to show, at a glance, where each market stands relative to its own stable range of housing activity. MiMi also indicates how each market is trending, whether it is moving closer to, or further away from, its stable range. A market can fall outside its stable range by being too weak to generate enough demand for a well-balanced housing market or by overheating to an unsustainable level of activity.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.