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California Weekly Market Data for week ending December 4, 2023

Conforming loan limits up for 2024

As conforming loans typically have lower interest rates than non-conforming loans, the increase in the limits next year should benefit many California homebuyers, especially since home prices are expected to grow moderately in 2024.

Mortgage rates at lowest level in ten weeks

While mortgage demand is still below the historical norm, the increase observed in the past month is encouraging and the market will hopefully continue to bounce back in the final month of the year.

Consumers feel slightly more upbeat in November

Buying plans in the next six months for big-ticket items - including homes - trended down last month, reflecting persistent concerns about elevated interest rates and shrinking Americans’ savings.

Construction spending continues to rise in October

Multifamily outlays, on the other hand, dipped again for the second straight month as builders pulled back on new starts due to the anticipation of an abundance in supply in coming months.

Commercial construction remained weak in October as macroeconomic headwinds intensified.

More signs of job market cooling

The increase in continuing claims could be an indication of a tougher time in finding new work for those who are already unemployed, which in turn is a reflection of a slowing labor market.

Despite the softness observed in recent weeks, the current job market remains solid and may continue to exhibit resiliency in the coming months. 

Tight supply and high cost of borrowing are the two primary factors that slowed the housing market this year. With loan limits rising and mortgage rates declining, more people should be able to afford to buy a home, and the market should begin to turn around in the first quarter of next year.

SOURCE : California Association of Realtors

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