Daily market update: Oct. 2, 2015

RealtyTrac’s “Why Homes Are More Affordable With Home Prices Higher” report:

• Home prices in the first quarter of the year hit their most affordable level in two years.
• The average interest rate on a 30-year fixed rate mortgage dropped 57 basis points, or 13 percent from the first quarter of 2014 to the first quarter of 2015.
• The drop in interest rates — along with wage growth outpacing home price appreciation in 32 percent of counties — meant buying a home in the first quarter required a smaller share of the average wage compared to a year ago.

U.S. Census Bureau’s August 2015 construction report:

• Construction spending during August was estimated at a seasonally adjusted annual rate of $1.09 trillion.
• This is a 13.7 percent increase over August 2014’s estimate of $955 billion.
• From January 2015 to August 2015, construction spending comprised $683.4 billion.

Freddie Mac’s Primary Mortgage Market Survey:

• The rate for 30-year fixed-rate mortgages was 3.85 percent.
• The rate for 15-year fixed-rate mortgages was 3.07 percent.
• The rate for five-year Treasury-indexed hybrid adjustable-rate mortgages was 2.91 percent.

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