Mortgage Guaranty Insurance Corp. on Tuesday reported that its national Market Trends Index–which measures price and sales movement in single-family housing markets–improved to 6.7 in the third quarter after being flat at 6.66 for the last two quarters.

“The U.S. economy grew at a steady rate as annual employment rose 1 percent, its strongest gain since 2001,” said Neil Siegel, MGIC’s senior market analyst. “However, cutbacks in the airline and auto industries, moderately higher interest rates, and rising energy costs could dampen the rate of economic growth.”

MGIC’s MTI is based on the Market Trend Analysis Report produced quarterly by MGIC’s Credit Policy Department using lagging three-month market data from 73 Metropolitan Statistical Areas (MSAs). The index is a barometer of single-family real estate market conditions with readings ranging from 1 to 10. A reading of 1 indicates a weak market showing no signs of improvement; a reading of 10, a strong market with no signs of deterioration. A reading of 6 to 8 indicates a stable market.

Siegel notes that 11 of the 73 markets tracked by MGIC are currently experiencing “soft” or “weak” single-family housing market conditions.

“Another increase in interest rates by the Federal Reserve Board had little impact on the housing market as both home prices and existing-home sales recorded strong gains,” Siegel said. “With this said, we still expect home appreciation to slow to traditional levels.”

Of the 54 markets currently rated as “stable” in MGIC’s Market Trend Analysis, 15 have a short-term projection of “softening” and four have a short-term projection of “improving.”

Austin, Texas; Buffalo, N.Y.; Denver, Colo.; Detroit, Mich.; Indianapolis, Ind.; Rochester, N.Y.; Portland, Ore.; San Francisco, Calif.; San Jose, Calif.; Salt Lake City, Utah; and Tulsa, Okla., are currently “soft.” On the other end of the spectrum, Orange County, Calif.; Riverside-San Bernardino, Calif.; San Diego, Calif.; Orlando, Fla.; Tampa, Fla.; West Palm Beach, Fla.; Honolulu, Hawaii; and Washington, D.C., are currently “strong,” according to MGIC’s Market Trend Analysis.

“The Southern and Western regions of the country continued to lead the housing sector, accounting for almost all of the ‘strong’ markets,” notes Siegel.

MGIC is a provider of private mortgage insurance coverage.

***

What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription