Good news for the spring selling season

Executive Summary

Ready for some good news? Today we got some really positive data on mortgage applications and existing home sales, which have both benefitted from rates in the low 6s. All signals point to a better spring home-buying season than we've seen in several years.

Go Deeper

Existing home sales hit a three-year high in December, rising 5.1% over November to a seasonally adjusted annual rate of 4.35 million. That's up 1.4% over last year.

And mortgage apps got a big bump after mortgage rates dropped last week following President Trump's announcement on MBS buying, increasing 28.5% from one week earlier. Purchase apps increased 16% week to week while the refinance index increased 40% from the previous week. Refis were 128% higher than the same week one year ago.

The housing market is still benefitting from the increase in inventory in 2025, so as long as rates stay in the low-6% range, the housing supply-demand equilibrium should add up to a sunny spring forecast!

• December existing home sales hit three-year high

• Mortgage applications rise 28.5%

• Potential cuts to FHA premiums weigh on mortgage insurers

Chart of the Day

The seasonally adjusted purchase index increased 16% from one week earlier according to the Mortgage Bankers Association. The unadjusted purchase index increased 51% compared with the previous week and was 13% higher than the same week one year ago.