The current value for the national LIHHM (Leading Index of Healthy Housing Markets) is 109.8, a modest increase from the previous quarter and the highest level in its history (data back to 2001). An index value over 100 suggests that the national housing market is healthy, with lower chances of a housing downturn over the next year as the index moves increasingly above the 100 breakeven value. In the fourth quarter, the employment, mortgage market, and house price growth components of the LIHHM remained positive. Household formations increased at a faster pace, but a continued tight mortgage lending environment remains an impediment to even stronger national housing activity. Regionally, the LIHHM performance rankings show that the majority of metropolitan statistical areas (MSAs) across the country are healthy, with only two in negative territory, indicating that few regional housing markets are vulnerable to a housing downturn in the near term.
