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Mark Hemingway

Mortgage Market Update for January 7th

Monday, January 7, 2019 - Article by: Mark Hemingway - Security Financial Services, LLC - Message

Online real estate company Zillow reports that the total value of the U.S. housing market rose $1.9 trillion in 2018 to $33.3 trillion, a 6.2% increase. That is up $10.9 billion since the market bottom in 2012, a third of the gains seen in California. New York comes in number one with the highest amount of total value of all homes at $3 trillion, accounting for 9.1% of the country's total hosing value. To put it in perspective, the $33.3 trillion in total U.S. housing value is equivalent to the combined Gross Domestic Products of the U.S. ($19.4 trillion), China ($12.2 trillion) and Canada ($1.7 trillion).

Fannie Mae reports that housing confidence deteriorated in December as more Americans believe it's a bad time to buy a home. The Fannie Mae Home Purchase Sentiment Index fell 2.7 points in December from November to 83.5. The index has resumed its downward trend after a slight increase in November. The report read that the net share of Americans who say it is a good time to buy a home fell 12 percentage points from last month to 11%. This component is down 13 percentage points from the same time last year. "Looking ahead, consumers expect the pace of home price growth to slow over the course of 2019, which may temper growing concern over housing affordability," said Doug Duncan, senior vice president and chief economist at Fannie Mae.

Gas prices at the pumps continue to edge lower due in part to oversupply and less demand during the winter months. The national average price for a regular gallon of gasoline is at $2.24 and has declined for 12 weeks in a row, reports motor club AAA. "As the global crude market continues to be oversupplied, oil prices are dropping, continuing last week's trend," said Jeanette Casselano, AAA spokesperson. "This is good news for motorists filling up at the pump."

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