National housing market indicators available as of January showed activity in housing markets was mixed. Trends in some of the top indicators for this month include:

• Purchases of new homes increased in December for a third
  consecutive month. New single-family home sales rose 2.3 percent
  to 616,000 units (SAAR) in December from a pace of 602,000 in
  November but were 26.6 percent lower year-over-year (y/y). Note
  that monthly data on new home sales tend to be volatile. For all of
  2022, new home sales reached 644,000, down 16.5 percent from
  771,000 in 2021 and their slowest pace since 2018. (Sources: HUD
  and Census Bureau)
• Existing home sales fell for the eleventh consecutive month to their
  slowest pace since November 2010. The National Association of
  REALTORS® (NAR) reported that December sales of existing homes
  (including single-family homes, townhomes, condominiums, and
  cooperatives) slipped 1.5 percent to 4.02 million units (SAAR) from a
  pace of 4.08 million in November and were 34 percent lower y/y. For
  all of 2022, existing home sales dropped 17.8 percent to 5.03 million
  units from 6.12 million in 2021 and the slowest pace since 2014.
  Because existing home sales are based on a closing, December sales
  reflect contract signings in October and November. Mortgage rates
  have trended down since September, and month-to-month (m/m)
  house prices have remained the same or declined in the past several
  months—all of which should help to improve demand. Inventories
  of existing homes are still lean, however.
• New construction of single-family homes rose to their highest level
  since August. Single-family housing starts increased 11.3 percent to
  909,000 units (SAAR) in December from a revised pace of 817,000
  units in November but were 25 percent lower y/y. Multifamily
  housing starts (5+ units in a structure), at 463,000 units (SAAR),
  fell 18.9 percent m/m and were 16.3 percent lower y/y. Note that
  m/m changes in multifamily starts are often volatile. Residential
  construction employment was up 3.2 percent y/y; residential
  construction costs were down 1.2 percent in December but up 6.9
  percent y/y. For all of 2022, total construction of new homes reached
  1.553 million units, 3.0 percent lower than in 2021 (1.601 million
  units and the strongest pace since 2006). New construction of singlefamily homes fell 10.6 percent, while starts on multifamily homes
  rose 14.5 percent in 2022. (Sources: HUD, Census Bureau and BLS)
• Annual house price appreciation continued to decelerate in
  November, with annual gains ranging from 6.8 to 8.2 percent.
  The Federal Housing Finance Agency (FHFA) seasonally adjusted
  purchase-only house price index for November estimated that home
  values were down 0.1 percent m/m and rose 8.2 percent y/y, down
  from an annual gain of 9.8 percent in October. The non-seasonally
  adjusted CoreLogic Case-Shiller® 20-City Home Price Index, posted
  a 0.8 percent m/m decline in home values in November and a
  6.8 percent y/y increase, down from an 8.6-percent annual gain in
  October. Mortgage financing has become more expensive as the
  Federal Reserve raises interest rates, a process that began in April.
  The annual growth rate of house prices peaked in the spring of 2022
  and may well continue to decelerate. The home price data for both
  indices are based on real estate sales contracts signed in September
  and October with subsequent closings during November. (Both price
  indices are released with a 2-month lag.)
• The inventory of homes for sale remained the same for new homes
  but fell for existing homes. The listed inventory of new homes for
  sale, at 461,000 units at the end of December, was unchanged m/m
  but was 18.5 percent higher y/y. That inventory would support 9.0
  months of sales at the current sales pace, down from 9.2 months in
  November due to an increase in sales. Available existing homes for
  sale, at 970,000 units in December, declined 13.4 percent m/m but
  were 10.2 percent higher y/y. That inventory represents a 2.9-month
  supply, down from 3.3 months in November. The long-term average
  for months’ supply of homes on the market is 6.0 months.
• The U.S. homeownership rate fell slightly in the fourth quarter.
  The national homeownership rate decreased to 65.9 percent in the
  fourth quarter of 2022 from 66.0 percent the previous quarter but
  was up from 65.5 percent a year ago. The historic norm since 1965
  is 65.2 percent. (Source: Census Bureau)
• Forbearance on mortgage loans remained the same. The MBA
  Forbearance Survey shows the share of homeowners with mortgages
  in forbearance was 0.70 percent (351,000 households) in December,
  the same as in the previous month, but down from 1.41 percent
  (705,000 households) one year ago. The forbearance rate was only
  0.25 percent of all home loans in the beginning of March 2020,
  before the economic effects of the COVID pandemic began to be felt.
• Housing insecurity due to the pandemic remains elevated but
  has improved. HUD analysis of the Census Household Pulse Survey
  (Week 53: January 4-16, 2022) shows that approximately 11.4
  percent, or 5.25 million, renter households were behind on rental
  payments, an improvement over 15.1 percent, or 6.96 million,
  households one year ago. An estimated 4.6 percent, or 2.13 million,
  renter households feared eviction was imminent in the next
  two months, down from 7.1 percent or 3.17 million a year ago.
  Under Treasury’s Emergency Rental Assistance (ERA) program, an
  estimated 2.84 million renters have applied for and received rental
  assistance. Approximately 5.57 percent, or 4.59 million, homeowner
  households were behind on their mortgage payments in January, an
  improvement over 6.66 percent, or 5.50 million in January of 2021.
  An estimated 1.12 percent, or 890,000 homeowners, feared
  foreclosure was imminent in the next two months.
• The 30-year fixed-rate mortgage (FRM) continued to ease, reaching
  its lowest level since September. The 30-year FRM reached an
  average weekly low in January of 6.13 percent the week ending
  January 26, 2023, down from the weekly low in December of 6.27
  percent and the lowest average weekly rate since last September
  (6.02 percent). The highest average weekly rate during that time
  frame was 7.08 percent in October and November. The mortgage
  rate was 3.55 percent one year ago. (Source: Freddie Mac)