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California Weekly Market Data for week ending November 27, 2023

Mortgage rates slide down to the lowest level since late September

While mortgage demand is still below the historical norm, the increase observed in the past month is encouraging and the market will hopefully see more improvement in the coming weeks if rates continue to decline.   

New home sales with mortgage rates 23-year high in October

New housing inventory continued to improve with new for-sale units climbing to 437k, the highest level since January. October inventory level is equivalent to a supply of 7.8 months at the current sales pace and remains above the historical average of 5.9 months.

New constructions hold steady as builders’ confidence dips

Despite higher rates in October, the lack of existing housing supply continues to support demand for new construction in the fall. Recent macroeconomic data suggests better conditions for home construction ahead and more units will be built in the coming months.

Black Friday spending tops last year’s level

The holiday shopping season got off to a good start, as U.S. retail sales on Friday, November 24 went up 2.5% year-over-year, according to Mastercard Spending Pulse. The spending strength, however, should taper off deeper into the holiday season as discounts weaken.

Small business owners remain pessimistic about their business outlook

Economic headwinds continue to weigh in on small businesses’ sentiment as the Small Business Optimism Index dropped slightly down to 90.7 in October, the 22nd month that the index dipped below the 50-year average.

Mortgage rates have declined from the recent peak by more than 50 basis points (bps) and continued to improve in the past few weeks. While housing demand remained below the historical norm, mortgage applications have been rising in the past three weeks, which is an encouraging sign to the market.

SOURCE : California Association of Realtors

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