Overview
- The Census reported a 587,000 seasonally adjusted annual rate in January, down 17.6% from December, with December revised to 712,000 for the weakest pace since October 2022.
- Inventory reached 476,000 homes, equal to 9.7 months of supply, as the median new-home price fell to $400,500, a 6.8% decline from a year earlier.
- Sales fell in all regions, with particularly sharp monthly drops in the Northeast, Midwest and West; analysts pointed to severe winter weather as a key headwind.
- MBA data indicate a February sales pace near 641,000 SAAR, with new-home purchase applications up 0.9% year over year but slightly below January.
- Mortgage rates have rebounded in recent weeks as oil-driven Treasury yields moved higher after the late-February Iran conflict, increasing the likelihood of continued builder incentives and slower starts.