Overall market strength continues for Wall Street. On Tuesday, both the Dow and S&P closed at five-year highs, as market momentum remains strong for 2013. The Dow enjoyed its highest close since Oct. 12, 2007.
Mortgage rates continue their narrow range, as the economic slate has been relatively quiet over the past couple of weeks. No major domestic or global economic volatility has been present, allowing a relative calm to infiltrate mortgage land. Is this the calm before the storm? Many economists are suggesting that a market pullback is imminent, and if that occurs, what will happen to mortgage rates? Geo-political activity is also something for us to watch, as global unrest can lead to price volatility in the Treasury market, which can then lead to rate movement.
January housing data has been released from the Triangle Multiple Listing Service, and the numbers continue to shine. Here are a few examples from the January data:
- Closed sales up 31.5 percent year-over-year for January
- Median sales price up 3.1 percent
- Days on market down 11.6 percent
- Inventory of homes for sale down 15.9 percent.
The last metric is one for us to watch closely. While the reduction in inventory is generally a good sign, there also needs to be a balance of supply and demand. If there is too much demand for too few homes, then the upward price pressure, which results from that imbalance, may end up dampening demand in the long run.
Otherwise, these key metrics point to continued stability and sustainability within our Triangle housing markets.