R
ates plummeted to a two-month low, bringing some relief for affordability, but pending sales took a hit and buyer confidence remains shaky. Key takeaways:

    The 30-year fixed-rate mortgage dipped to 6.76%, its lowest point since December, while the 15-year rate fell below 6% at 5.94%.

    Economic uncertainty is hindering buyer confidence, with investors shifting towards bonds as a safe haven and pushing mortgage rates lower.

    Lower rates could still encourage some buyers to act, but for now, homebuying activity remains subdued. Pending sales dropped 4.6% between December and January and were down 5.2% compared to last year.

    New home sales also disappointed in January, falling 10.5% from December and down 1.1% year-over-year, suggesting that housing costs are still too high during economic uncertainty.

    Mortgage applications slowed, with overall applications down 1.2% and the seasonally adjusted purchase index flat.

    Increasing supply is suppressing home price growth nationwide, particularly in Florida, where inventory reached an all-time high of 172,209 homes at the end of January, up 23% from last year.

    Florida's condominium inventory is also at a record high, pushing prices down in several metros. Home values in these areas fell significantly year-over-year, giving buyers more negotiating power if they're willing to enter the market.