Markets in a Minute, Housing Market News, February 26, 2024

This week’s financial and housing market news update

The Economy

• In a surprising turn, new unemployment claims took an unexpected dip last week, indicating a probable continuation of robust job growth into March.
• Insights from the recent Federal Reserve meeting revealed a heightened concern among members regarding the potential risks associated with an untimely reduction in interest rates, prioritizing caution over premature adjustments.
• Amidst two months of notable progress, consumer sentiment slowed in February, although there was a marginal uptick overall.

Housing Market News

• While single-family production showed modest improvement in January, a downturn in multifamily construction led to an overall decline in housing starts. Existing home sales, however, saw a promising 3% increase at the beginning of the year.
• Despite an uptick in the inventory of homes for sale in January, it remains constrained with a low 3-month supply. This dynamic is influencing the real estate landscape.

Mortgage Market Insights

• Last week witnessed a notable surge in mortgage rates, resulting in a decline in overall mortgage applications. Specifically, purchase applications fell by 10% for the week and registered a 13% decrease compared to the same period last year.
• These economic and housing trends underscore the importance of vigilance and adaptability in our industry. As professionals in real estate, development, home building, lending, and home improvement, staying attuned to these shifts positions us to navigate challenges and capitalize on emerging opportunities in the dynamic market landscape.