Happy Monday, folks! Existing home sales for the month of February saw a significant decline of 6.6% compared with January to a seasonally-adjusted annualized rate of 6.22 million units. Typically around this time of year, we may expect a ramp-up in properties being listed; that is not the case this year. Inventory, which has been historically low over the last few months, saw a 29.5% decline year-over-year to 1.03 million homes, or a two-month supply at the current sales pace. Given that a six-month supply indicates a balanced market, we can see how sickly inventory has become. Even though median home prices have seen significant increases this year due in large part to supply strain, potential sellers are hesitant to put their homes on the market for lack of buying options. Rising mortgage rates and home prices may help cool down the housing market, but right now, it’s overheated!
The 10yr. T-note is currently +4/32 to yield 1.68%, and the FNMA 30yr. 2.50% is trading at $102-13 to yield 2.07% with a +82 spread over the treasury curve. We would love to hear from you this week, so give us a call or an email!
Thanks, and have a great day!
Cherry Picks
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Jim Tait is a registered representative with and offers securities through Hanover Securities, Inc. (Hanover), Member FINRA & SIPC. Although this information has been obtained from sources we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Securities that may be shown are subject to availability and changes in price. Past performance is not indicative of future results. Changes in any assumptions may have a material effect on projected results.
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