Freddie Mac released it’s monthly Multi-Indicator Market Index (MiMi) last week, measuring housing activity on a national and state scale and providing relative data for the top 100 metro areas in the nation.
MiMi ranks each state and city based on four indicators: purchase application rate, which is based solely on applications for single-family homes in the relative market; payment-to-income (PTI), which measures payment on 30-year fixed mortgages as it relates to a homebuyer’s income; whether or not homebuyers are current on their mortgage payments; and employment, an indicator that separates a weak market from an in-range market (ideal) to an elevated market.
According to MiMi, the U.S. is on the low end of in range and improving. Purchase applications are up 1.7 percent but are still considered weak. PTI is down 1.05 percent, which is also considered weak, while homeowners who are current on their mortgage are considered in range. Employment is down 0.2 percent, but still comfortably in range.
On the Freddie Mac scale, “in range” refers to markets situated between 80 and 120. Numbers below 80 are considered weak, and numbers over 120 are considered elevated. In range is the ideal balance, but the indicators are what determine the final MiMi.
The arrows in the graphs point to the direction the market is moving regardless of the various indicator directions.
Freddie Mac MiMi for Miami, Florida.
Miami’s market is comfortably moving forward, with a MiMi rating of 90.5. Purchase applications are up 2.38 percent, but still situated in the weak category because of the 64.4 rating. PTI is down to 116.5, which is considered in range, but dropped 0.51 percent month-over-month. Those that are current on mortgages increased 0.74 percent month-over-month to a 67.9 rating (considered weak), and employment is up 0.71 percent, nearing elevated status at 113.
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