Impact of High Mortgage Rates and Elevated Home Prices on January Home Sales
High mortgage rates and elevated home prices led to a significant drop in home sales in January, with pending sales decreasing by 4.6% from December to the lowest level since tracking began in 2001. Sales were down 5.2% from January 2024, indicating challenges in affordability. Despite an increase in inventory, home prices remain high compared to the previous year.
Key Points
- Pending home sales dropped 4.6% from December to the lowest level since 2001
- Sales were down 5.2% from January 2024
- High mortgage rates and elevated home prices strained affordability
- Despite more inventory, home prices remain high nationally
Pros
- Increased inventory of homes for sale
Cons
- Decrease in pending home sales
- Challenges in affordability due to high mortgage rates and home prices