New home sales data reaches 10-month high, over 600k for 2nd month
In a report released by the US Census Bureau and the Department of Housing and Urban Development, new home sales hit a 10-month high, and cleared 600k units for the second straight month. The January total was at about 670,000 units sold, up from 625,000 units in December. This is also the best monthly performance in home sales since last March.
The region that performed the best? Southern states showed a 17.1% increase month-over-month.
How about Friday’s inflation report?
The core personal consumption expenditures price index, the preferred measure of inflation by the Federal Reserve, rose 0.6% in January, and was up 4.7% from the prior year. Both metrics came in above analysts’ expectations and triggered a sell-off in the stock market.
The concern here is that it shows the Federal Reserve still has a long way to go in getting inflation under control, and interest rates will need to go higher and stay there for a longer period than expected.
The ‘glass-half-full’ view was that the inflation report mirrored some of the other data points from earlier in the week. Jobs and consumer spending data were both up, so it makes sense that inflation followed.
What are ‘absentee homeowners’ & are they crowding the market?
Recent data released from the US Census Bureau showed that Americans are migrating to the Sun Belt and away from major population centers. Florida, Texas, and the Carolinas saw the largest influx of residents. California, New York, and Illinois saw the greatest decreases. This mirrored a lot of what we’ve seen in the housing market. Metro areas in the Sun Belt have recently seen an increase in demand while certain metros in California have started to cool.According to a report from NBC News, the number of homes sold to absentee homeowners has increased since 2020 across nine major metropolitan areas. What is an ‘absentee homeowner’? The report defines it as a homebuyer in the market for properties that won’t be their primary residence. In other words, the number of people buying homes for investments, second homes, or rental properties is increasing.
The report claims that the common denominator in these markets is that cash buyers are pushing borrowers out of the market.
The good news is that the team at Guaranteed Rate can help with borrowers competing with cash buyers. Learn more about how PowerBid can help you compete with cash buyers and put our power behind your bid.
Pre-Approval
in 10 minutes?
in under 10 minutes. Grab a few important documents to get started.
- Tax Returns
- Copies of W-2s (or 1099s for independent contractors,
freelancers and the self-employed) - A payroll stub
- A bank statement
- Loan obligation info (student loans,
auto loans and credit cards)
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
