Mortgage Rates – increased as we saw the price of Mortgage-Backed Securities fall to their worst levels since Aug. 2025. The escalating conflict in Iran has lowered the worldwide supply (despite reserves being released worldwide) of by nearly 20%, causing prices to rise and fear of long term price inflation.
Inflation the Personal Consumption Expenditures (the Fed’s favored index) showed that inflation increased 0.3% in January while the core reading, which strips out food and energy, rose 0.4%. Year over year inflation is down sligt;y from 2.9% to 2.8%
Home Sales – NAR released their Existing Home Sales report which tracks closing on existing homes in February. Home sales rose 1.7% in Feb. to a 4.09M unit annualized pace. Inventory is up 4.9% year over year, but based on the current rate of sales there is still a total inventory of 3.8 months.
Mortgage Applications to purchase homes rose by 8% and are up 11% year over year. Refinances increased 1% and are up 81% year over year. Adjustable rate mortgages are now making up 9% of total transactions.