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🏡 January Real Estate Market Update: Mortgage Rates Drop, Housing Construction Increases!

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📉🏠With the new year upon us, changes are happening in the real estate market. Here's a summary of January's market trends based on recent data.


📉 Mortgage Rates Drop! Good News for HomebuyersLast week, the 30-year fixed mortgage rate dropped to 6.96%, down from 7.04% the previous week. While this is still a high rate compared to the 12-month average of 6.75%, it's a positive shift from last May’s 7.22%. The market is showing signs of stabilizing, although rates are still higher than the December average of 6.72% and November's 6.81%.


🏗️ Housing Construction Booms! New Home Starts SurgeIn December, new housing starts reached their highest level in 11 months, increasing 15.8% from November, with an annualized total of 1.499 million units. This is the highest since February 2023. While new housing starts are expected to decrease by 3.9% in 2024 compared to 2023, single-family home construction is up 6.5%, indicating a robust housing supply.


💰 Inflation and Economic Trends: Slower Inflation RateConsumer prices rose by 0.4% in December, marking a 2.9% increase year-over-year. While inflation has been trending up since September’s 2.4%, core consumer prices (CPI) are rising faster than in recent months.


👷‍♂️ Strong Job Market! Unemployment Remains StableIn December, non-farm payrolls increased by 256,000, the largest monthly increase since March 2023. On average, 186,000 jobs were added monthly in 2024, down slightly from the 251,000 average in 2023. The unemployment rate remained steady at 4.1%, showing little fluctuation over the past seven months.


📌 Conclusion: Positive Market Signals with Lower Mortgage Rates and Increased Housing SupplyWith mortgage rates dropping below 7% and a surge in new home construction, the real estate market is showing promising signs for 2024. However, inflation and economic changes should still be closely monitored. If you're planning to buy or sell a home, now is a good time to observe the market trends.



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