John's Finance Corner: December's Surprising Surge in Existing Home Sales
Hello, homeowners and future buyers!
As we reflect on 2024, it's evident that it was a challenging year for existing home sales. The numbers were the lowest they've been in almost 30 years, with only 4.06 million sales, marking a 0.7% decrease from 2023. Low inventory, high mortgage rates, and rising home prices were significant factors affecting the market. However, December brought an unexpected twist, with existing home sales hitting a 10-month high.
A Glimmer of Hope in December
In December, closings on existing homes exceeded estimates, showing a 2.2% increase from November and a 9.3% rise compared to the previous year. This surge is noteworthy, especially considering that home sales usually slow during winter months. Over the last three months, we've seen a steady increase in sales, suggesting that buyers might be adjusting to the current market conditions and accepting them as the new norm.
Weekly Jobless Claims
Last week's initial jobless claims rose by 6,000 to 223,000, while continuing claims increased by 46,000 to 1.899 million. Since June, continuing claims have consistently exceeded 1.8 million each week. Although new claims remain historically low, the rise in continuing claims indicates that finding new employment is becoming more challenging for those who have been laid off. It's worth noting that unemployed individuals can only receive benefits for 26 weeks. After this period, they are no longer counted in the data, suggesting that the actual unemployment rate might be higher than reported.
Key Events to Watch
This week is significant, with several crucial events that could impact markets and rates. The Federal Reserve will hold a two-day meeting to discuss the current economy and potential rate cuts. Additionally, the Fed's preferred measure of inflation, the Personal Consumption Expenditures (PCE) index, will be released on Friday. Recent trends show treasury bonds moving in a favorable direction, which could help push mortgage rates lower.
Staying Informed and Prepared
Understanding these market dynamics is essential for making informed decisions. My goal is to provide you with the latest insights and guidance to help navigate the housing market effectively.
John Lamberg
MORTGAGE LOAN ORIGINATOR
NMLS 189233
