The U.S. housing market is currently facing significant challenges, with recent data indicating a decline in both pending and new home sales. In January, pending home sales dropped by 4.6%, reaching an all-time low, while new single-family home sales fell by 10.5%. These downturns are largely attributed to elevated mortgage rates, which have remained around 7%, and high home prices, with the median price rising to $446,300—the highest since October 2022. Additionally, potential policy changes, such as proposed tariffs on lumber and workforce reductions at housing agencies, could further impact construction costs and housing affordability. Despite these challenges, there is a slight easing in mortgage rates, offering a glimmer of hope for prospective buyers as the spring homebuying season approaches.

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