In November, the Federal Reserve reduced its benchmark for the third time this year. This action was widely anticipated by the market. Mortgage rates have remained steady this month and are still down by more than 1 percent from last year at this time. Residential new construction activity continues to rise nationally. The U.S. Commerce Department reports that new housing permits rose 5% in October to a new 12‐year high of 1.46 million units.
New Listings increased 17.1 percent for Single Family homes and 4.3 percent for Townhouse‐Condo homes. Pending Sales increased 8.1 percent for Single Family homes and 23.1 percent for Townhouse‐Condo homes. Inventory decreased 0.8 percent for Single Family homes but increased 11.4 percent for Townhouse‐Condo homes.
While many economic signs are quite strong, total household debt has been rising for twenty‐one consecutive quarters and is now $1.3 trillion higher than the previous peak of $12.68 trillion in 2008. While delinquency rates remain low across most debt types (including mortgages), higher consumer debt loads can limit future household spending capability and increase risk if the economy slows down.
