Market Recap: Existing Home Sales Down, Home Prices Up, New Home Sales Delayed
The partial US government shutdown continues, delaying the release of some economic indicators, including this week’s new home sales report. Existing home sales declined, as expected, following a slow winter season. Home prices appreciated more than expected.
Existing home sales or resales declined in December, down 6.4% month-over-month, to a seasonally adjusted annual rate of 4.99 million units. Based on the current sales pace, it would take 3.7 months to exhaust all available inventory. Home buying and selling tends to slow down during the winter months, and December’s data proved this. The recent decline in mortgage rates may be a sign of a strong spring recovery ahead.
The Federal Housing Finance Agency (FHFA) house price index tracks changes in the values of homes financed through conventional financing. In November, the FHFA house price index increased 0.4% month-over-month and 5.8% year-over-year, gaining some steam after several slower months.
The new home sales report was delayed due to the government shutdown.
As the partial US government shutdown continues, many government workers have been furloughed or working without pay. The Trump Administration and Congress have failed to agree on a solution regarding the spending of $5.7 billion on a border wall along the United States – Mexico border. Most types of mortgage loan originations are able to continue business as usual despite the government shutdown. If you have any questions about how your mortgage is impacted by the government shutdown, please let me know.
Sources: CNBC, Econoday, MarketWatch, MarketWatch, Mortgage News Daily