5.99%
5/1 ARM
6.08%
15 Year Fixed
6.69%
30 Year Fixed
-0.13%
5/1 ARM
-0.01%
15 Year Fixed
-0.13%
30 Year Fixed
According to the annual builders survey conducted by the National Association of Home Builders and Wells Fargo, high interest rates were again a significant factor for new home builders looking into 2024—though that number is down from 90% to 77% as rates have moderated and the Federal Reserve has ceased raising interest rates and is signaling a reduction in rates, possibly at a future meeting sometime this year.
With the market for existing homes struggling amid a lack of inventory, New Home Sales continue doing the heavy lifting for the housing market. Rather, New Home Sales are doing more to show a stronger relative performance to the pre-pandemic years. The market for existing homes is still far bigger, even at its weakest levels.
Despite the upward path of interest rates, both the CoreLogic Case-Shiller indices and the Housing Price Index (HPI) published by the Federal Housing Finance Agency (FHFA) showed continued appreciation in home prices last year, although not at the double-digit rate seen during the pandemic and its immediate aftermath. While all indices showed annual gains, all also indicated a softening of the market in recent months.