Source: US News —
Just how badly did the housing market end 2022?
That may be clear this week as a bevy of reports for December are released that will shed some light on the housing market: the number of new permits issued and homes on which construction has begun, the confidence of homebuilders and sales of existing homes.
The steep run-up in mortgage rates last year put a damper on home sales, down 35% from a year ago as of November. Builder confidence has declined every month in 2022 and new home starts and permits also slid to a 2 1/2 year low last month. None of those indicators are likely to have improved in December when they are reported on Wednesday and Thursday, respectively.
Housing has been the sector most affected by the Federal Reserve’s campaign to raise interest rates to ward off inflation. But with inflation slowing somewhat – the consumer price index hit 6.5% annually in December, down from summer’s 9.1% peak – there is hope that mortgage rates will decline and the market will show signs of life again in the spring.
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