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What's Happening Today

Happy Friday! It's Kristin with your daily morning digest.

Stocks are lower this morning after the Dow dropped yesterday, suffering its worst loss so far this year. Markets have been volatile as investors monitor tensions in Eastern Europe, with the White House warning of a potential Russian invasion of Ukraine. Russia is one of the world's largest oil producers, and concerns about a disruption of supplies is shaking up global energy markets, impacting stock markets in turn.

And a familiar crisis was averted here at home, as the Senate signed a short-term spending bill to keep the government running—for now. The vote passed the Senate Thursday, with the funding expected to last until March 11. At that time, Congress will have to consider a short-term resolution again, or finally pass a budget deal.

This morning, the National Association of Realtors announced existing home sales unexpectedly rose 6.7% in January, after falling by a revised 3.8% in December—a sign that the U.S. housing market is still going strong. Economists had projected sales would fall, as home prices surged on record low inventories, and as builders grapple with higher costs of building materials.

Set your calendars for our last, but not least, Instagram Live conversation about homebuying on Tuesday, Feb. 22, at 4 p.m. Eastern. We'll be talking with Patrice Washington, host of the "Redefining Wealth" podcast, author, and #MoneyMaven of the "The Steve Harvey Show" about how to enjoy and pay for your new home. We hope to see you there!

- Kristin

Editors' Picks

Home Sales Surge as Buyers Race Against Mortgage Rates (The Balance)

Senate Passes 3-Week Spending Bill, Averting Government Shutdown (The New York Times)

Got an Idea for a Banking Rule? Here's Where To Send It (The Balance)

The Inflation Survivors of the 1980s Have Some Advice for You (The Wall Street Journal)

Off the Charts

It's not just lumber that's helping push up the price of new homes. It's many materials used for building, including seldom talked-about products made with gypsum—a key component in the wallboard, cement, and certain types of plaster it can take to build a sturdy house.

Building materials prices increased 20.3% in January from the same month last year, and rose 28.7% from January 2020, according to the National Association of Home Builders, pointing to the latest Producer Price Index (PPI) report released by the U.S. Bureau of Labor Statistics.

Number of the Day

280,000 - That's how many home construction projects have building permits but haven't been started yet—the biggest builder backlog since at least 1999.

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