Freddie Mac released this week the Multi-Indicator Market Index (MiMi), which showed the majority of top-100 housing markets across the United States steadily improved to a national MiMi value of 86.4.
MiMi monitors and examines the stability of the U.S. housing markets in all 50 states, the District of Columbia and the top-100 metro markets. It combines Freddie Mac data, along with current local market information to examine where each single-family market is relative to its own long-term stable range.
The index shows that the increased value is on the outer edge of its historic benchmark range of housing activity with a +0.42 percent improvement from Sept. to Oct., along with a three month improvement of +1.86 percent. On a year-over-year perspective, the national MiMi value increased by +5.88 percent.
While the market has steadily improved since the 2008-2010 housing crisis, it remains significantly off of its historic high of 121.7.
“The purchase applications indicator is up nearly 20 percent from last year and is reflected in the recent better-than-expected existing and new home sales purchase data,” Freddie Mac Chief Economist Len Kiefer said. “MiMi does not yet capture the recent jump in mortgage rates since the election, which will drive down homebuyer affordability and likely dampen demand for home sales next year in some markets.”
Kiefer said that while there was strong growth in markets such as Dallas, Houston, Orlando, and Phoenix, many of those cities still remain well below their pre-2008 peak.