Weekly Market Update, Real Estate Statistics & National News – February 2, 2024

Keep in mind when looking at the month’s supply of inventory that different price bands have different amounts of inventory; It’s technically an aggregate sellers’ market, but keep in mind that the fewer number of buyers mitigate seller strength.

It is good to see that year-to-date under contracts for 2024 are stronger than 2022 and 2023, and slightly under 2018-2019’s pre-pandemic normal.

Looking for more stats, charts, national news, and our price band analysis? Check out our Boulder real estate agents blog here.

Boulder realtors report on strong activity in all price ranges, with inventory increasing most at the top end of the market; It’s still a strong time to be a $2.5mm+ buyer.

The Fed, as expected, maintained current interest rates near a two-decade high in its January 31 meeting.

While some investors anticipated a March cut, Chairman Jerome Powell suggested that confidence in the economy might not be sufficient by then. Powell did not rule out a March cut but indicated it’s not the primary scenario, with May being the earliest likely date.

Market reaction was unfavorable, leading to an immediate increase in interest rates and a decline in the stock market.

The probability of a March rate cut dropped from 50% to around 33% in futures markets. The delay in rate cuts means mortgage rates will likely remain elevated.

Contrarily, the U.S. Treasury’s announcement on January 31 that they don’t plan to increase treasury supply was positive for the housing market. Reduced treasury supply tends to elevate prices and lower interest rates.

Overall, these conflicting economic events may balance out, keeping mortgage rates relatively stable.

In the short term, economists project that mortgage rates are likely to remain steady, gradually decreasing throughout 2024.

Homebuyers and sellers may not witness significant impacts in the coming weeks, but as the mid-March Fed meeting approaches, fluctuations in mortgage rates are expected based on the likelihood of a rate cut, as Powell suggested they will provide indications beforehand.

Looking at the entirety of 2024, the Fed’s press conference affirmed an eventual rate cut within the year, and despite short-term volatility, a gradual decline in rates is anticipated.

For more in-depth discussion, see our links at the bottom under “Economic News and Real Estate.”

The Fed will cut rates fewer times and start them later than market hopes, according to CNBC Fed Survey

Private payroll growth slowed to just 107,000 in January, below expectations, ADP reports

Homeownership Rate Dips to 65.7% Amid Housing Affordability

Woes