March 7, 2024
Evidence that purchase demand remains sensitive to interest rate changes was on display this week, as applications rose for the first time in six weeks in response to lower rates. Mortgage rates continue to be one of the biggest hurdles for potential homebuyers looking to enter the market. It’s important to remember that rates can vary widely between mortgage lenders so shopping around is essential.
Information provided by Freddie Mac.
For Week Ending February 24, 2024
U.S. housing starts fell 14.8% month-over-month in January to a seasonally adjusted annual rate of 1,331,000 units, according to data from the U.S. Census Bureau. Single-family starts dropped 4.7% from the previous month, while multi-family starts declined 35.8%. Although construction was down for the month, builder sentiment continues to improve, rising to the highest level since August 2023, according to the National Association of Home Builders (NAHB) / Wells Fargo Housing Market Index (HMI).
IN THE TWIN CITIES REGION, FOR THE WEEK ENDING FEBRUARY 24:
FOR THE MONTH OF JANUARY:
All comparisons are to 2023
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
February 29, 2024
Mortgage rates continued their ascent this week, reaching a two-month high and flirting with seven percent yet again. The recent boomerang in rates has dampened already tentative homebuyer momentum approaching the spring, a historically busy season for homebuying. While sales of newly built homes are trending in a positive direction, higher rates and elevated prices continue to pose affordability challenges that may leave potential homebuyers on the sidelines.
Information provided by Freddie Mac.
For Week Ending February 17, 2024
Housing inventory improved for the third month in a row, with the number of homes actively for sale in January increasing 7.9% year-over-year, according to Realtor.com’s January 2024 Monthly Housing Market Trends Report. Lower mortgage rates appear to have brought some sellers back to the market, as the number of newly listed homes rose 2.8% year-over-year. While this is good news for prospective homebuyers, the supply of homes for sale remains down compared to typical 2017 – 2019 levels.
IN THE TWIN CITIES REGION, FOR THE WEEK ENDING FEBRUARY 17:
FOR THE MONTH OF JANUARY:
All comparisons are to 2023
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
February 22, 2024
Strong incoming economic and inflation data has caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates. Historically, the combination of a vibrant economy and modestly higher rates did not meaningfully impact the housing market. The current cycle is different than historical norms, as housing affordability is so low that good economic news equates to bad news for homebuyers, who are sensitive to even minor shifts in affordability.
Information provided by Freddie Mac.
