Freddie Mac Names Austin, Texas Second Most Stable Housing Market

October 28, 2015by Brian Talley

Austinluxuryhome8Freddie Mac, the Federal Home Loan Mortgage Corporation, ranked Austin as the second most stable housing market in the country in its latest Multi-Indicator Market Index (MIMI), gaining one spot from the rankings one year ago.

The capital city received a composite score of 96.6 based on four factors: purchase applications for conventional loans as a proportion of total housing stock, loan payments as a proportion of income, the number of delinquent home loans, and the employment rate. The trend for Austin housing is considered to be “improving.”

Texas ranked seventh among the states, two spots higher since last year. It received a score of 89.7, with a trend of “improving” and has shown an overall increase in its score from the previous month, the previous 3-month cycle, and annually.

Scores from 80 to 120 are considered healthy, within the four categories and overall. The national ranking was 81.2, with a trend of “improving.” Since about 2009, Austin has performed better than the national average. Texas began to perform better than the national average starting in about 2008.

Lake.Austin.PropertiesAustin’s “weak” area is in purchase applications, perhaps indicating tight housing inventory or tight inventory in historically affordable price ranges. However, this sector has experienced a 30.11 percent increase since a year ago, a 13.72 percent increase from three months ago, and a 4.24 percent increase from last month. Austin showed an improvement in all four categories from a month ago, with its highest ranking for the employment rate.

Fresno, California topped the list of 100 metro areas with a score of 99.4.

Read the full report here.