Saturday, December 21, 2024

The housing market is in a stronger position for reduced mortgage rates

Key Data Points for the Housing Market: Weekly Inventory, New Listings, Price-Cut Percentage, Pending Sales, 10-Year Yield and Mortgage Rates, Mortgage Spreads, Purchase Application Data, and The Week Ahead in Inflation and Fed Speeches

Are you interested in keeping up with the latest trends in the housing market? If so, you’re in luck! In this blog post, we will be diving into the weekly housing inventory data, new listings data, price-cut percentage, pending sales, 10-year yield and mortgage rates, mortgage spreads, purchase application data, and what to expect in the week ahead in terms of inflation, Powell testimony, auctions, and Fed speeches.

Let’s start with the weekly housing inventory data. This week, inventory growth slowed to 6,803, which is below the target level of 11,000-17,000. However, hitting the target level five times this year compared to zero times last year has made 2024 a much better year for housing than 2023. The inventory peak for 2024 is at 652,573, which is a significant improvement from the all-time inventory bottom in 2022 at 240,497.

Moving on to new listings data, we are currently at the seasonal peak period for new listings. While we have shown growth year over year, we have not yet reached the minimum target level of 80,000. The new listings for last week were 71,181 in 2024, compared to 58,289 in 2023 and 89,221 in 2022.

Next, let’s talk about the price-cut percentage. In an average year, one-third of all homes take a price cut, and this percentage has been higher this year compared to the last two years. The price-cut percentage for last week was 38% in 2024, 33% in 2023, and 32% in 2022.

In terms of pending sales, we have seen a tad more demand this year, with very little year-over-year growth this week. The pending contract data for 2024 is at 381,057, compared to 381,036 in 2023 and 420,816 in 2022.

The 10-year yield and mortgage rates have been fluctuating, with the 10-year yield trending lower after a crazy move higher two weeks ago. Mortgage spreads have improved this year compared to 2022 and 2023, which is a positive sign for the housing market.

Lastly, the purchase application data has shown fluctuations based on weekly moves in mortgage rates. The year-to-date data for 2024 is unfavorable, with more negative prints than positive prints.

Looking ahead, we can expect inflation reports, Powell testimony, auctions, and Fed speeches in the upcoming week. It will be interesting to see how recent labor data softness may impact the decisions of the Federal Reserve.

Stay tuned for more updates on the housing market trends and make sure to keep an eye on these key indicators to stay informed about the latest developments in the real estate market.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The content is based on general research and may not be accurate, reliable, or up-to-date. Before making any financial decisions, it is recommended to consult with a professional financial advisor or conduct thorough research to verify the accuracy of the information presented. The author and publisher disclaim any liability for any financial losses or damages incurred as a result of relying on the information provided in this article. Readers are encouraged to independently verify the facts and information before making any financial decisions.

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