All articles tagged with #housing market
Mortgage rates for the 30-year fixed dipped to 5.99%—the first sub-6% reading since 2022—driven by falling Treasury yields as investors seek safety amid renewed fears of a 15% universal tariff, signaling risk-off sentiment rather than a move to lower medium-term rates.
U.S. consumer confidence rose to 91.2 in February, led by gains among younger and higher‑income households, but concerns about jobs linger as the share saying jobs are hard to get jumped to a five‑year high and the labor‑market differential suggests unemployment could rise. December housing prices edged up 0.1% with a 12‑month rise of 1.8%, while mortgage rates remained a factor in housing demand.
Mortgage rates have sunk to their lowest level in about four years as the Fed keeps rates on hold, suggesting the bottom may be in for now. Borrowers could benefit from locking in rates, though future moves by the Fed and shifts in inflation or Treasury yields could influence volatility and the trajectory of rates going forward.
The average 30-year fixed mortgage fell to 5.99%, tying the lowest level since 2022 and helping refinancing applications surge about 130% year over year. Lower rates could widen loan eligibility and bolster spring homebuying, with a $400,000 home at 20% down costing about $1,916 per month in principal and interest vs. $2,105 a year ago.
Mortgage rates dipped back into the 5s, with the 30-year fixed at 5.99% today (down 0.05) as the broader bond market and MBS benefited from Fannie/Freddie bond-buying plans; no new news sparked the move and today’s improvement is modest compared with January’s brief visit to similar levels. Lenders’ quotes vary based on upfront costs and borrower specifics, so 5.99% is a top-tier average rather than a universal rate, and rates remain vulnerable to intraday reversals if the bond market moves against them.
Mortgage rates on conforming 30-year loans fell to 6.17%, the lowest in a month, spurring a 7% weekly rise in refinance applications (132% higher than a year ago) while purchase applications slipped 3% as buyers stay cautious amid tight supply and broad economic concerns. Overall mortgage demand rose 2.8% for the week, with rates hovering in a narrow band around 6%–6.25% this year.
Investors will parse housing data (starts, permits, pending sales) and a run of earnings, headed by Walmart before the open, to gauge consumer demand; Walmart has jumped over 20% this year as shoppers seek bargains, while GDP is expected to rise about 4.4% in Q4 ahead of Friday's data on consumer sentiment and personal income.
The FT Unhedged column argues that the US housing market is still the economy’s weak spot: existing home sales dropped 8.4% in January as affordability remains the dominant hurdle, with price gains of roughly 20% during the pandemic not fully offset by wages and ongoing high mortgage costs. Policy ideas like limiting institutional investors or boosting mortgage-backed securities are viewed as unlikely to meaningfully move prices. Meanwhile, inflation remains persistent rather than decelerating, implying few near-term rate cuts and continued policy caution.
A Washington Post column warns that mortgage delinquencies are creeping up after years of historically low rates, signaling trouble for homeowners with tight budgets. Although overall delinquency remains near low levels in the long term, the rise points to a quietly emerging risk that could affect those who can least afford higher payments.
Mortgage rates held steady around 6.17% for the 30-year fixed, staying in a tight 6.15%–6.20% range after a two-week high; traders weighed two economic reports and a Treasury borrowing outlook that hinted at higher issuance (which could push yields up), but a tame services-sector release helped bonds stabilize and keep rates from moving much today.
Home Depot said it would lay off 800 workers (about 150 at HQ in Atlanta and the rest from remote roles, mainly in technology) and require corporate staff to work in the office five days a week starting the week of April 6 to boost speed, agility, and connection to customers and frontline workers. The cuts come as housing turnover slows and mortgage rates stay high, contributing to weaker sales. The company expects FY2025 sales to rise ~3% with slightly positive same-store sales and will report Q4 earnings on Feb. 24. Shares have declined about 10% over the past year.
U.S. pending home sales fell 9.3% in December to a record low, with all four regions down and the Midwest posting the steepest drop to a new regional low. The piece attributes the downturn to the unwind of ultra-low mortgage rates from 2020–22, which inflated prices and locked in homeowners, reducing mobility and transactions for years. The trend shows little improvement and highlights ongoing weakness in the housing market nationwide.
December 2025 pending-home-sales fell 9.3% from November and 3.0% year over year, with declines in all regions (Northeast -11.0% MoM, Midwest -14.9%, South -4.0%, West -13.3%); the South showed a YoY gain of 2.0% while other regions were down. Inventory remained tight at about 1.18 million homes—the lowest level of 2025—despite rising closing activity. NAR Chief Economist Lawrence Yun cautions that seasonality and scarce listings may have dampened demand in the short term, though several metro areas still posted notable YoY gains per Realtor.com Economics.
Pending home sales declined 9.3% in December from November, missing expectations as activity fell across all U.S. regions; year-over-year, sales were higher only in the South. Inventory stood at 1.18 million homes, down 9% from November and at 2025’s lowest level, while the 30-year mortgage hovered around 6.25%. Homes spent about 39 days on the market, up from 35 a year earlier, underscoring the demand weakness amid tight supply.
December 2025 saw a record 47% more home sellers than buyers in the U.S., shifting negotiating power to buyers. The Sun Belt led buyer markets while the Northeast and Midwest were dominated by seller markets; Dallas posted one of the largest seller surpluses. National prices rose only 0.1% as mortgage rates eased, potentially attracting more buyers in January.