Instant Reaction: Mortgage Rates, March 2, 2023 – NAR.realtor
Instant Reaction: Mortgage Rates, March 2, 2023 NAR.realtor
Instant Reaction: Mortgage Rates, March 2, 2023 NAR.realtor
Not only did pending home sales increase for the second month in a row in January, but the increase was the largest since the June 2020 rebound from the pandemic plunge. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI) rose 8.1 percent in January to a reading of 82.5. This was on top of a 2.5 percent gain in December. [pendinghomesdata] The PHSI is based on contracts to purchase existing single-family homes, townhouses, condominiums, and cooperative apartments. It is a leading indicator of existing home sales over the following one to two months. Prior to the December uptick, pending home sales had fallen for 13 straight months. Last monthâs PHSI reading was down 24.1 percent compared to the January 2022 level of 108.7. The Index was benchmarked at 100 in 2001. Analysts polled by both Econoday and Trading Economics had been expecting only a 1.0 percent increase in pending sales. NAR Chief Economist Lawrence Yun said, âBuyers responded to better affordability from falling mortgage rates in December and January. Home sales activity looks to be bottoming out in the first quarter of this year, before incremental improvements will occur,â He expects that we will not see an annual gain in home sales until 2024. âMeanwhile, home prices will be steady in most parts of the country with a minor change in the national median home price,â he said. NAR anticipates that the economy will continue to add jobs throughout 2023 and 2024, with the 30-year fixed mortgage rate steadily dropping to an average of 6.1 percent in 2023 and 5.4 percent in 2024.
New home sales rose for the second consecutive month in January, reaching the strongest sales pace recorded since March 2022.
Sales of previously owned U.S. homes unexpectedly declined for a 12th-straight month in January, extending a record decline and underscoring how high mortgage rates continue to stifle housing activity. Contract closings slipped 0.7% at the start of the year to an annualized pace of 4 million, according to data from the National Association of Realtors … [Read more…]
As mortgage rates rise and inventory dwindles, real estate agents are taking it on the chin as pending home sales dry up.
U.S. pending home sales unexpectedly rose in December for the first time in seven months, wrapping up an otherwise poor year for a housing market battered by higher mortgage rates. The National Association of Realtors index of contract signings to purchase previously owned homes increased 2.5% last month to 76.9, according to a release Friday. … [Read more…]
Contract signings rose 2.5% nationwide in December, the first gain in six months, but pending home sales are 33.8% lower than a year ago.