When Rates Are Higher, Borrowers Who Shop Around Save More – Freddie Mac
When Rates Are Higher, Borrowers Who Shop Around Save More Freddie Mac
When Rates Are Higher, Borrowers Who Shop Around Save More Freddie Mac
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.
Purchase applications from January show home affordability declining, even as interest rates fell steadily throughout the month, according to the Mortgage Bankers Association. After two consecutive monthly drops, the median payment amount applied for on new purchase applications increased to $1,964 in January, rising 2.3% from $1,920 in December, the MBA reported. The median shot … [Read more…]
New home sales edged a little further out of a lengthy slump in January, topping 600,000 units for the second straight month. The U.S. Census Bureau and the Department of Housing and Urban Development said sales of newly constructed single-family homes were at a seasonally adjusted annual level of 670,000. This was up 7.2 percent from Decemberâs rate of 625,000 units and the best performance since last March. Sales remained 19.4 percent below the annualized total of 831,000 in January 2022. [newhomesall] Analysts polled by Econoday had projected sales at 617,000. Trading Economics was slightly higher at 620,000 units. On an unadjusted basis, there were 59,000 homes sold during the month. The December total was 47,000. New home sales in 2002 totaled 641,000. The year end figure for 2021 was 771,000. At the end if January there were an estimated 439,000 single-family homes available for sale, projected at a 7.9 month supply at the current sales pace. This is down from an 8.7 month supply i n December but 39 percent higher than the 5,7 month inventory a year earlier, Homes sold during the month at a median price of $427,500 and an average of $474,400. The sales prices in January 2022 were $430,500 and $501,200, respectively. The South was responsible for all of the monthâs sales gains. The region posted a 17.1 percent increase from Decemberâs sales while remaining 2.2 percent below the prior January level. Sales in the Northeast fell 19.4 percent and 13.8 percent below the two earlier periods.
Have homebuyers adapted to higher interest rates? Marketplace
An angry man by the name of Jared stopped by the blog the other day and left this beauty of a comment on my old A/C article: Now, my first inclination was probably the same as yours – a deep sigh as you pull on the 20 ounce XL bloxing gloves and prepare to Deliver […]
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