Rates Down Again, Purchase Demand “Thawing”

The 30-year fixed rate slipped slightly again last week, prompting some pent-up buyers to lock in a purchase, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.13%, down from 6.15% the week prior. A year ago at this time, the 30-year FRM averaged 3.55%. The 15-year fixed-rate mortgage fell from 5.28% to 5.17%. A year ago, it averaged 2.80%. “Mortgage rates continue to tick down and, as a result, home purchase demand is thawing from the months-long freeze that gripped the housing market,” said Sam Khater, Freddie Mac’s chief economist. “Potential homebuyers remain sensitive to changes in mortgage rates, but ample demand remains, fueled by first-time homebuyers.” Pending home sales have been…

Pending Home Sales Rise, Breaking Six Month Spiral

Pending home sales rose for the first time since May, breaking a six-month streak of declines, according to the National Association of Realtors. The Pending Home Sales Index increased by 2.5% between November and December. Year-over-year it dropped by 33.8%, an improvement over November’s 37%. All four regions saw pending sales fall YOY, but the South and West saw gains month-over-month. “This recent low point in home sales activity is likely over,” said NAR Chief Economist Lawrence Yun. “Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market.” Mortgage rates fell again last week to 6.13%, drawing some buyers back to the market. Purchase loan applications increased again as…

Pending Home Sales Fall For Fifth Straight Month

Pending home sales fell for the fifth consecutive month in October, with three of the four regions seeing month-over-month declines, according to the National Association of Realtors. The Pending Home Sales Index dropped by 4.6% between September and October. Year-over-year it tanked by 37%. All four regions saw pending sales drop year-over-year. The Midwest, however, experienced a small uptick month-over-month, up by 3.3%. The Northeast PHSI fell by 4.3% from September, while the South fell 6.4% and the West saw a major decline of 11.3%. “October was a difficult month for home buyers as they faced 20-year-high mortgage rates. The West region, in particular, suffered from the combination of high interest rates and expensive home prices. Only the Midwest squeaked out…

Pending Home Sales Down For Third Month

Pending home sales fell for a third consecutive month in August, with three of the four regions seeing month-over-month declines, according to the National Association of Realtors. The Pending Home Sales Index dropped by 2% between July and August. Year-over-year it tanked by 24.2%. All four regions saw pending sales drop year-over-year. The West, however, experienced a small uptick month-over-month, up by 1.4%. The Northeast PHSI fell by 3.4% from July, while the South fell 0.9% and the Midwest dipped by 5.2%. “The direction of mortgage rates – upward or downward – is the prime mover for home buying, and decade-high rates have deeply cut into contract signings,” said NAR Chief Economist Lawrence Yun. “If mortgage rates moderate and the…

July Pending Home Sales Slip Slightly, Buoyed By Moderating Interest Rates

Following moderating mortgage rates, pending home sales slipped only slightly in July, down 1% from June. The National Association of Realtors’ Pending Home Sales Index posted a reading of 89.8 last month. A reading of 100 is equal to the level of contract activity in 2001. Pending sales were down 19.9% YOY, slipping from last month’s 20% YOY reading. It was the second consecutive month of decline and the eighth in the last nine months. “In terms of the current housing cycle, we may be at or close to the bottom in contract signings. This month’s very modest decline reflects the recent retreat in mortgage rates. Inventories are growing for homes in the upper price ranges, but limited supply at…

Pending Home Sales Slip

Pending home sales tumbled in June after a slight increase in May, falling 8.6% month-over-month and 20% YOY. The National Association of Realtors’ Pending Home Sales Index posted a reading of 91 last month. A reading of 100 is equal to the level of contract activity in 2001. The PSHI is a forward-looking indicator of home sales based on contract signings. “Contract signings to buy a home will keep tumbling down as long as mortgage rates keep climbing, as has happened this year to date,” said NAR Chief Economist Lawrence Yun.  “There are indications that mortgage rates may be topping or very close to a cyclical high in July. If so, pending contracts should also begin to stabilize.” Buying a…

Pending Home Sales Tick Up, Breaking Six Month Downward Streak

Pending home sales finally rose in May after six consecutive months of decreases, ticking up a small but significant 0.7%. The National Association of Realtors’ (NAR) Pending Home Sales Index (PHSI) posted a reading 99.9 last month. A reading of 100 is equal to the level of contract activity in 2001. The PSHI  is a forward-looking indicator of home sales based on contract signings. However, year-over-year transactions are down 13.6%. “Despite the small gain in pending sales from the prior month, the housing market is clearly undergoing a transition,” said NAR Chief Economist Lawrence Yun. “Contract signings are down sizably from a year ago because of much higher mortgage rates.” All four regions saw YOY declines but were split down…

Pending Home Sales Down For Sixth Straight Month

Pending home sales fell for the sixth straight month, down 3.9% in April from the month prior and 9.1% YOY, according to the National Association of Realtors (NAR) Pending Home Sales Index (PHSI). The PHSI looks at contract signings as an indicator of home sales, with a reading of 100 equal to contract signing activity in 2001. It registered a reading of 99.3 in April. Only the Midwest saw an increase in pending sales, while the three other regions saw declines. Pending home sales transactions in the South fell by 4.7% to an index of 119.0, down 10.3% YOY. The index in the West slipped 4.3% in April to 85.9, a 10.5% decrease YOY. “Pending contracts are telling, as they…

Morning Roundup (2/28/2022)– UWM, Pending Home Sales

Good Morning! Today is Monday, February 28. Russia’s currency plummeted against the dollar due to sanctions imposed by the U.S. and its allies. More than 350 civilians have died since the invasion began. The Supreme Court will hear arguments in a dispute over the E.P.A.’s power to limit greenhouse gases. The Mortgage Note Reports UWM Teams Up Again With Scandal-Plagued Casa: Despite his misogynistic attacks on the wife of a competitor, it appears Anthony Casa is once again in Mat Ishbia’s fold with his new UMortgage business. Pending Home Sales: Pending home sales continued a three-month streak of declines in January, with contract signings down 5.7% to 109.5 in January and 9.5% YOY. NAREB Exec Named: C. Renee Wilson has…

Pending Home Sales Fall For Third Straight Month

Pending home sales continued a three-month streak of declines in January, the National Association of Realtors (NAR) reported. NAR’s Pending Home Sales Index (PHSI) found contract signings fell 5.7% to 109.5 in January, down 9.5% year-over-year (YOY). Only the West saw any increases, with contract signings rising 1.5% from December to January, but down 9.7% from a year earlier. The Northeast saw the largest annual drop in contract signings, 16.7%, plus a 12.1% drop in the month-to-month numbers, down to 84.3. The Midwest saw a 5.9% drop both monthly and annually, while signings in the South fell 6.3% from December and 8.7% YOY. “With inventory at an all-time low, buyers are still having a difficult time finding a home,” said…