Purchase applications are up, inventory drops

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1.Purchase applications are up, but inventory drops

Last week, the US housing market experienced further volatility as housing inventory continued to decline, and mortgage rates rose from recent lows of 5.99% to 6.50%.

However, purchase application data showed a 3% increase week-to-week, but was down 37% from last year.

On the other hand, housing inventory dropped by 13,238 units. Inventory decline is a seasonal trend, with housing inventory tending to bottom out in January/February before the seasonal spring increase.

Unfortunately, the decline has been more aggressive since 2020, with last week's decline being double the amount in the same period last year.

2. The 10 most popular housing markets for millennials in 2023

Despite the challenges faced by the mortgage market, originators can still rely on a consistent demand for homes from millennials.

LendingTree reports that adults born between 1981 to 1996, who are currently between 27 to 42 years old, make up 53% of all mortgage requests, which is almost twice the rate of the previous generation, Generation X.

In addition, millennials are the largest group of borrowers in 37 of the largest metropolitan areas across the country, according to the same report.

Here are the most popular markets for Millennial homebuyers, analyzing data of mortgages offered to the demographic in 2022.

3. January sees lower annual inflation but higher monthly rate

• CPI rose 0.5% in January from December.

• Annual rate dipped to 6.4%, the lowest since October 2021.

The Consumer Price Index increased by 0.5% in January, meeting analysts’ expectations, while the all-items index increased 6.4%, down slightly from a 6.5% annual increase reported in December and the smallest 12-month increase since the period ending October 2021.

The Shelter index was the largest contributor to the monthly all-items increase, rising 0.7% from December.

The shelter index increase to an annual rate of 7.9% is “the highest rate of housing inflation since 1982.” The mixed CPI report indicates that the fight against inflation is not over, and Federal Reserve Chairman Jerome Powell will not likely cut rates soon.

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5. 1 fun thing. HBO’s ‘The Last of Us’ Brings the Fear of Mushrooms

☀️ See you on Friday!

💬 Quote: "Have no fear of perfection—you'll never reach it." - Salvador Dalí

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