Markets in a Minute, Housing Market News, December 10, 2023

This week’s financial and housing market activity update…

The Economy

• October witnessed a notable 3.6% downturn in factory orders, surpassing expectations and marking the most substantial monthly decrease in over three years [Reuters]. 
• Job openings dropped to 8.7 million, falling below projections and hitting their lowest point since March 2021. This is indicative of a labor market undergoing a subtle relaxation.
• Oil prices reached a six-month low attributed to burgeoning crude supplies. This decline contributed to a reduction in bond yields, encouraging lower mortgage rates within the market.

Housing Industry Updates

• The recent dip in mortgage rates has sparked a resurgence in refinancing activity, with a noteworthy 14% increase in refinance applications for the week and a solid 10% surge year over year.
• Despite this positive trend, prospective homebuyers continue to grapple with the challenges of elevated prices and limited inventory. Purchase applications witnessed a slight decline of 0.3% for the week and a more substantial 17% dip year over year.
• There are positive indicators for the housing market as we approach 2024. Inventory levels have seen an improvement, and there are more homes currently under contract compared to the conclusion of 2022. This indicates a potential upswing in the housing sector in the coming year.

Persist and Prevail: The Value of Unyielding Determination

In the vast landscape of dreams and aspirations, persistence is the wind beneath the wings of triumph. Consider the remarkable journey of the Wright Brothers, pioneers of flight, who faced countless setbacks before achieving the seemingly impossible. Their unwavering determination, fueled by an unrelenting passion for flight, propelled them beyond the boundaries of conventional wisdom. In the face of challenges, remember the soaring spirit of those who refused to abandon their dreams, proving that persistence yields the ultimate reward of reaching new heights. Embrace your goals with the tenacity of the Wright Brothers, for it is through persistence that the skies of success are conquered.