The nation’s housing market remains on the outer edge of its historic benchmark range of housing activity, according to Freddie Mac’s Multi-Indicator Market Index.
The national MiMi value came to 86.4 in October, representing a 5.88% increase year over year, Freddie reported Wednesday. The historical benchmark level for the index is 100.
“The purchase applications indicator is up nearly 20% from last year and is reflected in the recent better-than-expected existing and new home sales purchase data,” Freddie’s deputy chief economist Len Kiefer said in a news release. “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.”
There are 41 states along with the District of Columbia that have index values within the range of their benchmark averages, with Georgia joining this group of states. Nevada showed the greatest year-over-year improvement at 12.87%, followed by Massachusetts and Florida.
Additionally, 77 of the 100 largest metropolitan areas now have their MiMi values in the benchmark average range, with Orlando, Fla., showing the highest growth year over year.
The MiMi monitors the stability of the country’s housing market, as well as the markets at the state and metropolitan level. When a market falls beyond its benchmark range that is an indication that the market is not strong enough to fuel demand or that it is overheating.