Housing Market Recovery Showed Progress in 3Q

The U.S. housing market improved during the third quarter of 2016, led by increases in the homeownership rate, home prices, purchases of new single-family homes and a reduction in seriously delinquent loans, according to the latest National Housing Market Summary published by HUD’s Office of Policy Development & Research.

Highlights:

  • Construction starts on single-family homes rose one percent from the second quarter and two percent from the year before.
  • Purchases of new single-family homes increased four percent from the second quarter and 21 percent year-over-year.
  • The rate of seriously delinquent loans fell to 2.96 percent in the third quarter, the lowest rate since the third quarter of 2007.
  • After falling two consecutive quarters, the U.S. homeownership rate grew to 63.5 percent from 62.9 percent in the second quarter, but was still down from the prior year’s rate of 63.7 percent.
  • Data collected by the Federal Housing Finance Agency and CoreLogic Case-Shiller® showed annual house price appreciation rates stabilizing in the five to six percent range.