On February 14, 2025, the economics team at Realtor.com® presents a timely video update aimed at navigating the ever-evolving housing market. Chief Economist Danielle Hale shares insights on inflation data and its implications for Federal Reserve policy, alongside encouraging trends in mortgage rates and homebuying sentiment.
This week, Hale highlights that inflation saw a notable uptick, reaching an eight-month high, yet there is a silver lining with shelter inflation decreasing year-over-year. Coupled with lower unemployment rates, this suggests the Fed may approach policy adjustments more cautiously.
Mortgage rates have been on a downward trajectory for four consecutive weeks but are likely to increase as the market digests recent inflation data. Despite consumers’ hesitance about future rate drops, optimism in home purchasing is growing, bolstered by improved job security and expectations of rising home prices.
Additionally, Realtor.com indicates a resurgence in seller activity, with new listings bouncing back into double-digit growth. This opens a window for buyers to explore fresher properties at possibly lower asking prices just in time for the bustling homebuying season.
Danielle also showcases the latest Realtor.com Hottest Housing Markets report, noting Manchester-NH as the hottest market, while Philadelphia’s market saw significant improvements ranking among the largest metros this month. For detailed reports and ongoing updates, visit realtor.com/research.
On February 14, 2025, Danielle Hale discusses rising inflation and its impact on the Fed’s policies. Mortgage rates have decreased but are expected to rise next week. Homebuying sentiment is improving, supported by positive job security and rising home prices. Realtor.com reports increased seller activity and highlights the hottest housing markets, including Manchester-NH and improving conditions in Philadelphia.
This week’s economic update reveals a complex landscape for homebuyers and sellers alike, with inflation and mortgage rates playing pivotal roles. While rising inflation presents challenges, the growing sentiment towards homebuying signals a silver lining for the market. Increased seller activity combined with declining mortgage rates enhances prospects for potential buyers, particularly as the housing season approaches. Positive shifts noted in key metro markets further contribute to this optimistic outlook.
Original Source: www.realtor.com
