January 2023

Price Drops and Lower Mortgage Rates Provided Temporary Lift to New Home Sales

The Census Bureau reported new home sales for January at a seasonally adjusted annual rate of 670,000 units. This is old news, but more confirmation of what we have seen in the local North Texas housing market. The boost to new home sales at the end of 2022 and January of this year was the result of improved affordability. It was a confluence of several events. The key ingredients were as follows: Overly loose financial conditions with many Americans still sitting on excess savings Falling mortgage rates in December and January Significant price reductions from [...]

Higher Rates Coming Back for the North Texas Housing Market

The North Texas housing market started off the year with renewed animal spirits. It appears the Powell Fed made a colossal mistake by taking their foot off the breaks before inflation has been vanquished. We can already see signs of inflation percolating again in the housing market. The Fed Back to Where it Started The first FOMC meeting of 2023 revealed a huge blunder by the Powell Fed. As the markets ramped higher for the last month asset owners cheered that inflation had been conquered. Housing market participants reveled in the headlines of a coming [...]

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