This past week was relatively quiet for mortgage markets, with no major economic reports making waves. As expected, the housing market showed some softness in January, particularly in areas hit by bad weather. Despite that, mortgage rates held steady with little change. Home sales dipped 5% from December, but they were still slightly higher than this time last year. Meanwhile, home prices continued their climb, with the median price hitting $396,900—a record high for January and up 5% from a year ago. Inventory remains tight, sitting at just a 3.5-month supply nationwide, well below the six months considered a balanced market. That said, inventory levels have improved by 17% compared to last year, giving buyers a little more to choose from. New home construction also took a hit last month, with housing starts dropping 10% from December. Single-family home construction was down 8%, and builder confidence slipped as uncertainty around tariffs, high mortgage rates, and rising costs weighed on the industry. On a more positive note, building permits—a key indicator of future construction—held steady, suggesting some stability ahead. Mortgage application activity followed the same trend as the rest of the housing market. Refinance applications dipped 7% from the previous week, but they're still up a significant 39% compared to a year ago. Purchase applications also fell 6% week-over-week but managed to stay slightly ahead of last year's levels. Looking ahead, investors will be paying close attention to what the Fed says about future rate decisions. Next week's key economic reports include Consumer Confidence on Tuesday, New Home Sales on Wednesday, and the Fed's preferred inflation measure, the PCE price index, on Friday. If you're ready to open the doors to your dream home, reach out today—we're here to help! #RaveisMortgage #BiggerandBrighter #202Thrive #WilliamRaveis #RaveisTeam #MortgageUpdate #InterestRates #HousingCosts #FedMeeting #InflationWatch #HomeBuying #RealEstateMarket #HousingTrends #MortgageRates #FinancialNews #EconomicUpdate
