Most popular markets of 2023

🥂 Happy Friday — it's the last newsletter of 2023! Thanks so much for reading along this year and making us part of your day. We'll be back in your inbox on Jan 3.

1. Mortgage rates fall to 6-month low

Mortgage rates dropped to the lowest level since June, offering some reprieve to a housing market that has been battered by higher borrowing costs.

The average rate on the standard 30-year fixed mortgage fell about a quarter percentage point to 6.67%, according to a survey of lenders released yesterday by Freddie Mac.

“Lower rates are bringing potential homebuyers who were previously waiting on the sidelines back into the market,” Sam Khater, Freddie Mac’s chief economist, said in the statement.

2. Zillow’s most popular markets of 2023

The most popular market among Zillow surfers this year was West Chester, Pennsylvania. After the West Coast ruled 2021 and the Midwest took the top spot last year, the Northeast dominated this year’s list.

Zillow surfers generally gravitated toward smaller cities in 2023. Of the 10 most popular markets, only one — Manchester, New Hampshire — has a population of more than 100,000, and most are less than half that size.

The top 10 most popular markets on Zillow of 2023:

3. Catch up quick

⚖️ Feds sue Texas developer accused of preying on Latino buyers. (DE LOS)

🌊 Kanye wants $53 million for Malibu house missing windows and electrical. (WSJ)

💸 Home prices are up in all major U.S. cities, except one: Austin. (CNBC)

⏳ Dovenmuehle Mortgage to lay off several hundred in Illinois. (HousingWire)

4. Existing home sales unexpectedly rise

Existing-home sales grew in November, breaking a streak of five consecutive monthly declines, according to the NAR.

Among the four major U.S. regions, sales climbed in the Midwest and South but receded in the Northeast and West. All four regions experienced year-over-year sales decreases.

Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – elevated 0.8% from October to a seasonally adjusted annual rate of 3.82 million in November. Year-over-year, sales fell 7.3% (down from 4.12 million in November 2022). LINK

5. Consumer confidence snaps back at year end

Consumer confidence jumped to a five-month high as consumers were more optimistic about inflation and the economic outlook. This optimism was primarily driven by slowing inflation, expectations of lower interest rates, and fading fears of recession.

The Consumer Confidence Index, reported by the Conference Board, rose 9.7 points from 101.0 to 110.7 in December, the highest level since August 2023.

The Expectation Situation Index, a confidence gauge that looks ahead six months, jumped to 85.6 from 77.4. Historically, an Expectation Index reading below 80 often signals a recession within a year. It's the first time the index has topped the recessionary line of 80 in four months. LINK

6. First American suffers cyber attack

First American Financial suffered a cyber attack yesterday morning, forcing the title company to shut down its website and some of its systems.

In a statement on the title company’s website, it notes that First American has “taken certain systems offline” and that it is working to resume normal business operations as soon as possible.

First American provides settlement services and title insurance for homebuyers, sellers, brokers, mortgage lenders and investors — essentially all the parties in a real estate transaction. The firm also handles foreclosure proceedings.

🎉 Have a wonderful holiday break. - Dave and Ian.

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