{"id":594322,"date":"2026-02-16T16:02:17","date_gmt":"2026-02-16T16:02:17","guid":{"rendered":"https:\/\/www.europesays.com\/us\/594322\/"},"modified":"2026-02-16T16:02:17","modified_gmt":"2026-02-16T16:02:17","slug":"us-housing-market-gets-encouraging-signs","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/594322\/","title":{"rendered":"US Housing Market Gets Encouraging Signs"},"content":{"rendered":"

The U.S. housing market has had a slow start this year, with existing-home sales hitting a 16-month low in January as high prices and economic worries keep would-be buyers to the sidelines.\u00a0<\/p>\n

But experts, citing the latest data on the economy, say this year’s “chilly start” may not necessarily be a sign of what is ahead for the U.S. housing market, as Realtor.com wrote in a recent update.<\/p>\n

Why It Matters<\/p>\n

Home prices skyrocketed during the pandemic, when historically low borrowing costs sparked a homebuying frenzy across the country, which clashed against a chronic, nationwide lack of inventory. Since then, mortgage rates have shot up and, together with higher home prices, choked demand<\/a>.<\/p>\n

Over the past year, the number of sellers on the market has far outstripped buyers, giving the latter a chance to negotiate prices before closing a deal. Despite this improvement for buyers, the market has remained frozen, as prices continue to rise at the national level. This deep freeze is not beneficial to either sellers or buyers, who are both stuck in a sort of housing limbo.\u00a0<\/p>\n

What To Know<\/p>\n

The numbers coming out of the housing market suggest sellers and buyers are still stuck in a stalemate, with many owners locked into their properties by lower rates and many would-be owners discouraged by still-elevated costs.<\/p>\n

Danielle Hale, the chief economist at Realtor.com, cited two key macroeconomic indicators\u2014last week’s jobs report and the consumer price index (CPI)\u2014that suggested conditions might improve through the year.<\/p>\n

\"\"<\/p>\n

The January jobs data<\/a> showed better-than-expected numbers, reporting that the country’s economy added 130,000 jobs, or “nearly nine times as many as the typical month in 2025,” Hale said.\u00a0<\/p>\n

“On net, the jobs report was one of this week’s relatively good signals,” she added.<\/p>\n

In the same month, inflation also fell, registering 2.4 percent overall and 2.5 percent for core inflation, which excludes food and energy prices.\u00a0<\/p>\n

“Although still above target, core inflation is at its lowest level since March 2021,” Hale said.\u00a0<\/p>\n

“Taken together, neither the job nor inflation data was enough to shift market expectations that the Federal Reserve will leave its policy rate unchanged in March, but it’s encouraging to see both of these key indicators moving in the desired direction,” she added.<\/p>\n

“Steady mortgage rates,” according to Hale, also give “some reasons for optimism” that the U.S. housing market will overcome its winter hurdles. While still double the pandemic-era lows, mortgage rates are now consistently hovering around the 6 percent mark, the lowest they have been in about three years.<\/p>\n

As of February 12, the average 30-year fixed-rate mortgage was 6.09 percent, according to Freddie Mac.<\/p>\n

What People Are Saying<\/p>\n

Jake Krimmel, Realtor.com’s senior economist, said in a statement shared with Newsweek about the latest consumer price index data:<\/strong> “For housing and consumers, easing inflation is good news, but it comes with important caveats too. Real income growth from falling inflation and rising wages will boost purchasing power, and with mortgage rates steady around 6.1 percent for several weeks now, everything is moving in the right direction for improving housing affordability heading into spring.”<\/p>\n

Chris Zaccarelli, the chief investment officer for Northlight Asset Management, said in a statement shared with Newsweek:<\/strong> “As long as CPI remains in check\u2014which so far it has\u2014then the rates discussion will revert back to the labor market, and under the current economic conditions the Fed is likely to proceed cautiously lowering rates a couple of times later this year.”<\/p>\n

He added: “The market is going through some volatility right now, which isn’t that surprising, but the bull market is likely to remain intact as long as the economy continues to grow, the labor market holds up, and inflation measures continue to fall. All of these conditions are in place and there haven’t been any new data points this month to contradict that.”<\/p>\n

What Happens Next<\/p>\n

Most experts expect housing affordability to improve slightly<\/a> this year, though changes will likely be modest.<\/p>\n

\"\"<\/p>\n

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