The housing sector is a significant contributor to gross domestic product (GDP) through construction, home sales, and renovations.
In March 2024, pending home sales rose 3.4% from last month and increased modestly (0.1%) from a year ago.
Seasonality refers to predictable changes in time series data that correlate with certain times of the year; understanding it will help us anticipate trends in the upcoming months.
Mortgage interest rates for the week sit at an average of 7.17%, and may show little dramatic downward movement any time soon.
Housing market activity declined 4.3% in March 2024, reaching a 4.19 million seasonally adjusted annual rate, down 3.7% from March 2023.
Housing affordability declined nationally in February compared to the previous month, the monthly mortgage payment decreased by 3.0%, and the median price of single-family homes declined modestly by 1.5%.
Mortgage interest rates rose to 7.1% this week; despite higher mortgage rates, mortgage applications increased.
Yesterday's inflation figures rose to 3.5%, and as a result, mortgage interest rates are likely to increase in the coming weeks.
March inflation figures were very bad, which also means bad news for interest rates.
The job market is strong, with 303,000 net payroll job additions in March; 39,000 net new jobs in construction means more housing supply is on the way.
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