Just under one third of the states plus the District of
Columbia are now in what is considered a “stable” range on Freddie Mc’s
Multi-Indicator Market Index®
or MiMi. The index, a monthly evaluation
of the U.S. housing market compared to its long-term stable range, stood at 74.5
Freddie Mac said the index currently indicates a weak
housing market overall but it is slightly improved from September to October,
up by 0.12 percent. The three month
trend is positive at 0.42 percent. Compared
to the same point in 2013 the MiMi has increased by 4.48 percent.
The index combines proprietary Freddie Mac data with current
local market data on home purchase applications, payment-to-income ratios (this
measures changes in home purchasing power based on house prices, mortgage
rates, and household income,) the proportion of mortgage payments made on time,
and local employment data. The index
compares this data for the nation, the states, and the 50 top metropolitan
areas with data for those areas from what is considered a stable time in the
market. A composite number is computed
for each locality and the MiMi also indicates whether an area is trending toward
or further away from its stable range.
Of those thirteen states plus the nation’s capitol current considered
to be in a stable range the highest ranked are North
Dakota (95.9) the District of Columbia (94.1), Montana (91.2), Wyoming (91.0),
and Hawaii (89.2).
Of the eight (out of
50) metro areas tracked that are also considered stable the top three are all
in Texas; San Antonio (89.9), Austin (87.0), and Houston (85.3). Los
Angeles (84.4) and Salt Lake City (83.1) round out the highest ranked five.
Twenty-nine states and 41 metropolitan
areas showed an improved three month trend in October compared to 39 states
plus the District of Columbia, and 43 of the top 50 metro areas the previous
October. Two metro areas, San Jose and Pittsburgh,
reached their benchmark stable ranges during the month.
The all-time MiMi high was 122.5, reached
in June 2006 while the low was 60.3 in September 2011, when the housing market
was at its weakest. Since that time, the housing market has made a 23.5 percent