The September 2024 housing market presented a mixed bag of data, highlighting a complex landscape with contrasting trends in existing and new home sales. On one hand, sales of existing homes declined to their lowest level since October 2010, reflecting ongoing challenges like limited inventory and high prices. On the other hand, new home sales showed signs of strength, rising both month-over-month and year-over-year. Adding another layer to the story, single-family housing starts and builder sentiment also pointed to potential optimism for future market conditions. Let’s break down what these numbers mean and how they could shape the housing market going forward.

The real estate data for March 2023 had a significant impact on mortgage-backed securities (MBS) in April. Let's explore how specific factors influenced MBS:

Throughout September, the latest August home sales data reflected a strong sensitivity to mortgage rates. When rates experienced a short-lived dip in August, home sales reacted with a sudden jolt of activity. However, September 2022 closed out with mortgage rates hitting their highest levels since 2007. Thus, the real estate will be sure to compensate with the next round of real estate reporting.

May 2022 highlighted numerous real estate market challenges facing prospective home buyers. Now, the data directly supports the drop-off in activity.