📈 Inflation Ticks Up, Mortgage Rates Follow
This week, mortgage rates edged slightly higher as inflation data came in stronger than expected. The Fed’s preferred inflation gauge, the Core PCE Price Index, showed a 2.8% annual increase in February, up from 2.7% the previous month. While this is still progress toward the 2.0% target, it underscores the challenge of bringing inflation fully under control.
🏡 Housing Market Snapshot
✅ Existing Home Sales: Up 4% from January, surprising analysts who expected a decline. However, sales are still slightly lower than this time last year.
✅ Record-High Home Prices: The median existing home price reached $398,400, a 4% increase year-over-year—the highest February price on record.
✅ Inventory Levels: Still historically low, with just a 3.5-month supply nationally. However, inventory has grown 17% year-over-year, providing more options for buyers.
🏗️ Home Building Bounces Back
After a weather-related slump in January, home construction made a strong recovery:
✔️ Housing starts jumped 11%, with both single-family and multi-family construction seeing similar gains.
✔️ New home supply remains near its highest level since 2007, giving buyers more choices.
✔️ Builder sentiment fell to a 7-month low, with rising costs and tariff concerns weighing on optimism.
💡 What Does This Mean for Buyers & Sellers?
-
For buyers: Inventory is improving, but home prices are still climbing. Locking in a mortgage rate sooner rather than later could be a smart move.
-
For sellers: Demand remains strong, and homes are still selling at record prices. If you're thinking about listing, now could be a great time.
📩 Need a strategy for buying or selling in today’s market? Let’s talk! Send Me a message Today
