Thursday – January 19, 2022
Low inventories continue to be thorn in the side of potential home buyers across the nation, while mortgage rates continue to increase. December Existing Home Sales fell 4.6% from November to an annual rate of 6.18 million annualized units versus the 6.44 million expected. Last year, sales of existing homes totaled 6.12 million, up 8.5% from 2020 and the highest annual level since 2006. Sales fell in all four major regions of the country. Inventories for existing homes fell to 1.8 months of supply, a record low where six months of inventory is seen as normal. The median price for all housing types in December was $358,000, up 15.8% from December 2020 ($309,200).
Home borrowing costs rose to near levels seen in late March of 2020 this week, though they remain historically low. Freddie Mac reports that the 30-year fixed-rate mortgage rose 11 basis points to 3.56% with 0.7 in points and fees. The record low was 2.65% on January 7, 2021. Sam Khater, Freddie Mac’s Chief economist said, “As a result of higher mortgage rates, purchase demand has modestly waned in advance of the spring homebuying season. However, supply remains near historically tight levels and home prices remain high, keeping the market competitive.”
First-time unemployment claims continued to remain low in the latest week as the country continues to get back to normal as the pandemic subsides. At present, there are nearly 11 million jobs available across the nation. The Labor Department reports that Weekly Initial Jobless Claims rose to 286,000 from 231,000 for the week ended January 14, 2022. Continuing claims, or those receiving benefits for at least two weeks straight, rose to 1.635 million from 1.551 million.
Courtesy of Mortgage Market Guide
-CHECK US OUT ON SOCIAL-
Tuesday – January 18, 2022
The Empire Manufacturing Index, which highlights manufacturing activity in the New York region, came in at -0.70, down sharply from 31.9 in December and well beneath expectations of 25.5. Within the report, demand for goods waned. The New Orders index was -5, down big from 27.1 in December. Most firms were generally optimistic about the six-month outlook.
Ongoing inflation pressures along with supply-side disruptions weighed on home builder sentiment this month despite consumer demand remaining high. The NAHB Housing Market Index slipped to 83 in January from 84 in December hovering near current levels for the past few months. Any number over 50 indicates that more builders view conditions as good than poor. Current sales conditions were unchanged, sales expectations in the next six months declined slightly while the charting traffic component of prospective buyers also slipped. NAHB Chief Economist Robert Dietz said, “While lean existing home inventory and solid buyer demand are supporting the need for new construction, the combination of ongoing increases for building materials, worsening skilled labor shortages and higher mortgage rates point to declines for housing affordability in 2022.”
Courtesy of Mortgage Market Guide
-CHECK US OUT ON SOCIAL-
