Housing markets

The S&P CoreLogic Case-Shiller index measures a period when 30-year mortgage rates were climbing toward 8%, shutting out increasing numbers of would-be homebuyers.

The so-called core personal consumption expenditures price index barely rose in November and trailed policymakers' 2% target by one measure, reinforcing the central bank's pivot toward interest-rate cuts next year.

Purchases of new single-family homes decreased 12.2% to a 590,000 annual pace last month, a one-year low, government figures showed Friday.

Median homes in the top three cities in this ranking are being sold on average 12 days faster than the year before.

Even if lower rates boost inventory and shift sales from new to existing homes, these companies are well-positioned to deal with the change, analysts said.

The effects of expected lower mortgage interest rates are boosting a lot of different facets of the housing market.

Indicators are starting to align, that with falling interest rates and prices, buyers and sellers will return to the housing market in 2024, a trio of interested parties commented.

Contract closings increased 0.8% from a month earlier to a 3.82 million annualized rate, according to the National Association of Realtors, and ahead of estimates of 3.78 million units.

Industry leaders share their thoughts on some of the forecasts that fizzled.

Loans for new homes are up 22% while overall purchase volume is down 20%, the Mortgage Bankers Association found.

Construction of single-family houses jumped 18% to the highest level since April 2022, while starts of multifamily projects increased 6.9%.

The report showed the gauge of prospective buyer traffic also climbed for the first time in five months, while a measure of expected sales reached a three-month high.

The upcoming election exposes the Federal Reserve to heightened criticism for its actions, said Brookings Institution senior fellow Sarah Binder.

Pending sales also increased in November as mortgage rates began to decline during the month, but cancellations reached a new record during the month.

The government is moving forward with a catalog of pre-approved home designs to reduce the cost and time it takes to build housing. The idea dates back to the 1940s when thousands of soldiers returned from the Second World War and needed a place to live.

But despite the pullbacks in home values this fall, a panel of economists anticipate they will rise over the next year.

Toll Brothers Inc. stock rose as the homebuilder's executives pointed to "solid" demand in recent weeks as mortgage rates pulled back from two-decade highs. 

Heightened government-backed activity also helped bring the average loan size down to its lowest mark in 2023, with purchase amounts falling below $400,000 for the first time since January, the Mortgage Bankers Association found.

While Fitch and CoreLogic predict home prices will rise next year, Redfin is forecasting a 1% drop in the second and third quarters.

Only 62% of likely purchasers surveyed in October were waiting to act in expectations of declines, down from 85% in April.