Markets in a Minute, Housing Market News, February 20, 2024

This week’s financial and housing market activity update…”

The Economy

• The dynamics of shelter costs played a pivotal role in the unexpected rise in January’s inflation, mitigating the likelihood of an imminent rate cut by the Federal Reserve.
• Emphasizing caution, Fed members underscored their reluctance to initiate rate cuts at this juncture, expressing a preference for more comprehensive data analysis before making any decisions.
• Consumer spending exhibited a steeper decline than anticipated in January, following December’s positive trajectory. Retail sales witnessed a notable 0.8% dip, surpassing the anticipated 0.3% decrease. 

Housing Market Updates

• The recent uptick in mortgage rates resulted in a 2.3% decline in total applications. Purchase applications saw a 3% weekly decrease and a 12% drop year over year.
• According to a recent survey, YouTube emerged as the preferred social media platform for homebuying information among Gen Z and Millennials.
• Despite heightened competition, there is a noticeable decrease in the number of home sellers resorting to price cuts in 2024 compared to the previous year. Both new and active listings have experienced year-over-year increases, reflecting the resilience of the market.

Navigating the Future
For professionals in the industry—from real estate agents and lenders to developers, builders, and home contractors—it’s imperative to stay finely tuned to market subtleties. The intricate dance between economic cues and housing patterns highlights the necessity for nimbleness and meticulous strategic foresight within this perpetually shifting terrain.