MarketMinute | New home sales are a bright spot amidst rate challenges. - Greenway Mortgage Blog

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MarketMinute | New home sales are a bright spot amidst rate challenges.

Jan 31

9:36

AM

Category | Markets in a Minute

The Fed left its policy rate unchanged in January and sent a clear signal it will keep rates unchanged until fresh data dictates otherwise.

Consumer confidence unexpectedly dipped to a 4-month low in January. Optimism fell due to the future labor market and economic outlook.

However, the economy remains on solid footing. A still-strong labor market helped power consumer spending as GDP grew 2.5% in the fourth quarter.

Housing News

New home sales were up 6.7% year over year in December. Annual sales came in 2.5% over 2023's total, hitting their highest level since 2021.

After 4 straight months of gains, December’s pending home sales dropped by 5.5%, coming in much lower than expected due to higher rates.

Though rates have now improved slightly, mortgage demand continues to weaken. Purchase apps fell 0.4% for the week and 7% from a year ago.