Existing home sales started the year on the right foot and set the stage for a strong year to come. Homebuilders remain optimistic, despite mounting challenges. And rising inflation expectations helped propel mortgage rates much higher.

Existing home sales set the stage for a strong 2021

• January existing home sales rose 0.6% from December and 23.7% from January 2020, to 6.69 million (SAAR).
• The monthly increase was in line with Zillow’s forecast.

Despite a small stumble to start the year, home builders remain ready for a solid spring

• January housing starts fell 6% from December and 2.3% from January 2020, to 1.58 million (SAAR).
• Permits for future housing projects rose 10.4% from December and 22.5% from last year, to 1.881 million (SAAR).

Mortgage rates surged higher on growing inflation expectations

• Retail sales in January jumped 5.3% from December, well above expectations.
• A report from the NY Fed highlighted the strength of the mortgage market in late 2020.

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