NATIONAL REAL ESTATE MARKET UPDATE JANUARY 2022

New single-family home sales slid 4.5% in January, to an 801,000 annual rate. The problem is low inventory, but that’s been rising since July, while the number of single-family homes under construction is at the highest level since 2006.

Pending home sales

Pending Home Sales dipped 5.7% in January, dropping for the third month in a row. This index of contracts signed on existing homes is down 9.5% year-over-year, constrained by lack of supply, as demand remains strong for now.

NATIONAL REAL ESTATE MARKET UPDATE JANUARY 2022

The Case-Shiller home price index gained 1.3% in December, a slowdown from earlier last year. Still, that index is up 18.8% from a year ago, while the FHFA price index of homes financed with conforming mortgages rose 17.7% for the year.

Real Estate last week

VOLATILE COMEBACK… Russia’s Ukraine invasion sank stocks big time, but they then rebounded sharply on reports Moscow was ready to negotiate with Ukrainian leadership, which sent traders off to hunt down bargains.

There were US, UK, and EU sanctions, but they stopped short of removing Russia from the SWIFT global payment system and cutting off Russian oil and gas sales. This eased oil prices and rallied stocks, but uncertainty remains.

PCE inflation was up 6.1% year-over-year and University of Michigan Consumer Sentiment fell to its lowest level in 10 years. Yet consumer spending was up, and so was business spending, with a jump in Durable Goods Orders.

The week ended with the Dow down just 0.1%, to 34,059; the S&P 500 UP 0.8%, to 4,385; and the Nasdaq UP 1.1%, to 13,695.

Overall bond prices slipped for the week, the UMBS 3.0% down .06, to $100.44. In Freddie Mac’s Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate decreased slightly. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.

FEDERAL RESERVE WATCH

Forecasting Federal Reserve policy changes in coming months. The expectation on Wall Street remains that there will be a quarter percent rate hike at the next three FOMC meets. A fair number of Fed watchers think the June meeting could bring a half percent lift. Note: In the lower chart a 100.0% probability of change is a 100.0% probability the rate will rise.

NATIONAL REAL ESTATE MARKET UPDATE JANUARY 2022

DID YOU KNOW… A recent survey from a national rental website discovered that among renters looking to move in 2022, nearly 42% said they intend to purchase a home.