Existing Home Sales Drop
In January, sales of existing homes fell 5% from December but still were a little higher than a year ago. The median existing-home price of $396,900 was up 5% from last year at this time and a record high for January. Inventories remain stuck at historically low levels, standing at just a 3.5-month supply nationally, far below the 6-month supply typical in a balanced market. However, inventories were 17% higher than a year ago.
Housing Starts Plunge 10%
While it was heavily impacted by bad weather and thus anticipated, the latest home building data was not encouraging. Overall housing starts in January plunged 10% from December, matching the consensus forecast. Single-family starts declined 8% from December and were a little lower than last year at this time. Less affected by the weather, single-family building permits, a leading indicator of future construction, were nearly flat from December. A separate survey of home builder sentiment on housing market conditions from the NAHB unexpectedly turned sharply lower this month. Builders cited uncertainty about tariffs, high mortgage rates, and rising costs as areas of concern.
Mortgage Applications Decline
The news on mortgage applications last week was consistent with the other housing sector reports. According to the latest data from the Mortgage Bankers Association (MBA), applications to refinance fell 7% from last week but still were a massive 39% higher than one year ago. Purchase applications fell 6% from the prior week but were up a little from last year at this time.
Mortgage Rates for the week of 2-24-2025