March Madness

In this buzz: Slow start of the spring season in the housing markets; Some Housing industry, home building and construction news, and housing market coverage…

Rough segue:
After a stellar start to the year in January, stocks closed out February giving up some ground month to month. March should prove to be another exciting month as uncertainty about the economy and interest rates continues. Speaking of rates, how about those mortgage demand numbers, huh… rough segue I know.

U.S. mortgage demand fell…
… for the third week in a row as interest rates increased;
– mortgage rates have moved half a percentage point higher over the last month.
– Mortgage applications to purchase a home dropped 6% last week versus the previous week.
These higher rates have made potential buyers more hesitant just as the spring housing season commences.

Applications to refinance a home also dropped. Refi application were down 6% week over week and down 74% year over year. Refinancing accounts for less than a third of all mortgage applications and has slowed as most homeowners have already locked in lower rates.

After briefly dipping in January,
… mortgage rates resumed their move higher as worries about inflation resurfaced. The lower rates in January caused a spike in home purchases though the recent drop in demand seems to imply a slow start to spring.

🧠 Box:
Personal Consumption Expenditures Price Index A measure of the prices that people living in the United States, or those buying on their behalf, pay for goods and services.

The PCE price index is known for capturing inflation (or deflation) across a wide range of consumer expenses and reflecting changes in consumer behavior. It’s a major indicator of inflation in the U.S. economy.