Housing Market Tilting Toward Buyers

U.S. Retail Sales numbers came in lower than expected, so that has been good news for the bond market this morning (and mortgage rates).

According to Redfin, the U.S. housing market is seeing an increase in available homes, with a five-month supply at the start of February—the highest in nearly six years. This is up from 4.4 months a year ago, indicating a shift toward a more balanced market. New listings rose by 8% in early February, giving buyers more options, and the typical home is now selling for 2% less than the listing price, the most significant discount in two years.

 However, pending home sales are still down 8% year over year, as affordability remains a major hurdle. High home prices and mortgage rates have pushed the median monthly housing payment to $2,784, close to a record high. Some buyers are also holding back due to extreme weather.

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