February 26 2025

Reef Daily

Reef Daily | February 26 2025

Housing Market Update

Latest Market Data (February 26, 2025)

New Home Sales: Purchases of new single-family homes plummeted 10.5% in January to a seasonally adjusted annual rate of 657,000, the lowest in three months. Harsh winter storms and elevated mortgage rates contributed to the decline.
Construction Activity: Bowling Green, Ohio, reported a 39.5% year-over-year increase in new dwelling units, with 48 homes built in 2024 compared to 29 in 2023. Zoning permits also rose 16%.

Mortgage Rates

Current Rates as of February 26, 2025:

Type	Today's Rate	Last Week's Rate
30-year fixed	6.88%	6.92%
15-year fixed	6.22%	6.25%
5/1 ARM	6.04%	6.07%

Future Forecasts:

Zillow revised its 2025 home price forecast, projecting a 1.1% national increase by January 2026.
CoreLogic predicts annual home price growth will slow to 2% in 2025, down from 4.5% in 2024, as affordability challenges persist.

Market Indicators

Consumer Confidence: The Conference Board’s Consumer Confidence Index fell 7 points to 98.3 in February, the steepest monthly decline since August 2021. Concerns over inflation and economic uncertainty drove the drop.
Equity Markets: The S&P 500 and Nasdaq Composite fell 0.75% and 1.5%, respectively, marking their fourth consecutive decline. Tesla shares dropped 8%, erasing $1 trillion in market cap, while Home Depot gained 3% post-earnings.

Regional Developments

Midwest:

Bowling Green, Ohio, saw a surge in residential construction, with 272 new households receiving city newsletters, up from 133 in 2023.

West:

Colorado’s Pikes Peak MLS reported 191 homes sold in the past week, a 3% week-over-week decline. Active condo inventory fell 19%.

Northeast:

Limited new construction continues to constrain inventory, though no new data emerged in the past 24 hours.

Economic Outlook

Inflation & Spending: Walmart’s lowered 2025 sales growth forecast heightened concerns about consumer spending resilience. The 10-year Treasury yield dipped to 4.3% as investors shifted to bonds amid equity volatility.
Global Markets: European equities outperformed U.S. indices, with the STOXX Europe 600 up nearly 10% year-to-date. Chinese tech stocks rallied 35% from January lows.

Sources

This newsletter is for informational purposes only and should not be considered as financial advice.