Pending Home Sales Index Posts Surprising Numbers
Author bio section
I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.
Riding on the declining mortgage rates, pending home sales have come around really well, beating all expectations. This further asserts that the housing market is the only silver lining in the Coronavirus-affected economy.
The National Association of Realtors (NAR) has an index that puts the contract signings into perspective. According to it, the signings to buy previously owned houses have shot up 16.6% once again, building on the excellent show in May (44.3% rise).
Lawrence Yun, the chief economist for NAR is surprised. In his statement, he suggested, “It is quite surprising and remarkable that, in the midst of a global pandemic, contract activity for home purchases is higher compared to one year ago”. Sitting at 116.1 in June, the index is at a point untouched since February 2006.
While the housing market offers every sign of beating the crisis before other industries, unemployment levels and the Coronavirus-rebound are still big concerns at this moment. Keller Williams’s chief economist, Ruben Gonzalez has stated that “Housing market activity in June was strong, with buyers benefiting from extremely low mortgage rates that have continued declining all the way through July,” He further added, “If we see a further slowing in the pace of new listings coming on the market as a result of the recent surge in coronavirus cases, and mortgage rates continue to spur demand, we could continue to see upward pressure on home prices.”
The NAR has already raised its existing home sales projection to 5.18 million units from 4.93 million units forecasted in May.
Related Posts
- 82Having fallen below 3% for the first time since Freddie Mac started recording, the mortgage rates have risen above 3% once again, thus arresting a fall which began 6 weeks ago. At this point, it is only symbolic though. From 2.98% on July 16, we are at 3.01% (July 23).…
- 82For the first time in the last 50 years, the mortgage rates for the 30-year fixed-rate loan have come below 3%. Freddie Mac reveals that the rates sat at 2.98% for the week closing on July 16. On the year-to-year chart, it is a 22% decline. Unsurprisingly, the rate drop…
- 80Usually good employment report in itself is bad enough for mortgage rates. Combine that with a rally in Oil and a statement from a regional Fed President and you have a perfect storm. Employment Report - US added 257,000 jobs last month (much higher than the predicted number of 237,000).…
- 79In last 2 weeks, mortgage rates have jumped sharply. They are up 0.25% for most loan programs and the outlook is for something worse for the rest of 2015. Day to day mortgage rates are decided by the movement of mortgage backed securities (MBS) as traded on the Wall Street.…
- 79The big news dominating financial markets right now is split between the continued improvement in employment numbers and the potential impact of the pending Tariffs on steel and aluminum. So far this year, most economic releases have met or exceeded predictions, proving that the economy is growing. But right now…
