10/22: MetroIntelligence Economic Update by P. DUFFY
Building permits rose 5.2 percent in September and 8.1 percent year-on-year
Privately-owned housing units authorized by building permits in September were at a seasonally adjusted annual rate of 1,553,000, up 5.2 percent from August and 8.1 percent year-on-year. Single-family permits were up 7.8 percent from August and 24.3 percent year-on-year. Multi-family permits for buildings with 5+ units were up 1.0 percent from August but down 22.2 percent year-on-year.
Housing starts rose 1.9 percent in September and 11.1 percent year-on-year
Privately-owned housing starts in September were at a seasonally adjusted annual rate of 1,415,000, up 1.9 percent from August and 11.1 percent year-on-year. Single-family housing starts were up 8.5 percent from August and 22.3 percent year-on-year. However, multi-family starts for buildings with 5+ units were down 14.7 percent from August and 17.4 percent year-on-year.
Purchase apps fall 2 percent from previous week, but up 26 percent year-on-year
The Market Composite Index for mortgage loans decreased 0.6 percent on a seasonally adjusted basis from one week earlier, with purchase loans falling 2 percent (but up 26 percent year-on-year) and refinance activity edging up 0.2 percent (and up 74 percent year-on-year). The average contract interest rate for 30-year fixed-rate mortgages increased to 3.02 percent from 3.00 percent.
Year-on-year national rents hikes for single-family homes fell to 2.1 percent in August
Data collected for August 2020 shows a national single-family home rent increase of 2.1 percent year-on-year, down from a 2.9 percent year-over-year increase in August 2019. Rent price growth began to see gains again in July and strengthened more in August as the U.S. job market started to build back and businesses continued to reopen.