Daily market update: March 22, 2017

We’ll add more market news briefs throughout the day. Check back to read the latest.

Mortgage rates:

Home equity rates:

Most recent market news:

First American’s Potential Home Sales Model

February 2017 Potential Home Sales

  • Potential existing-home sales decreased to a 5.7 million seasonally adjusted, annualized rate (SAAR).
  • This represents an 89.8 percent increase from the market potential low point reached in December 2008.
  • In February, the market potential for existing-home sales fell by 0.5 percent compared with a month ago, a decline of 28,000 (SAAR) sales.
  • Currently, potential existing-home sales is 658,000 (SAAR) or 11.5 percent below the pre-recession peak of market potential, which occurred in July 2005.

Market Performance Gap

  • The market for existing-home sales is underperforming its potential by 2.5 percent or an estimated 142,000 (SAAR) of sales
  • Last month’s revised underperformance gap was 4.5 percent or 260,000 (SAAR) sales.

“Steady income and job growth combined with increased building permit activity has increased the market potential for home sales on an annual basis,” said Mark Fleming, chief economist at First American, in a statement. “Demand from millennials and first-time homebuyers remains robust despite the strong spring sellers’ market and rising rates, resulting in a shrinking underperformance gap, as the market aligns with its potential.”

March 2017 Re/Max National Housing Report:

  • February 2017 home sales were down 0.02 percent from February 2016.
  • Active inventory reached a record low for February, dropping 17.9 percent year-over-year. Average days on market dropped from 75 in February 2016 to 68 in February 2017.
  • The median sales price was $212,000, up 6 percent year-over-year.

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