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Pending home sales rebound in May

Posted by Mehran Aram on Mon, Jul 1, 2019 @ 05:07 AM

The National Association of Realtors reported last week that after a setback in April, pending home sales bounced back in May, increasing 1.1 percent. The NAR’s Pending Home Sales Index is a measure of newly signed contracts for home purchases.

The increase was not enough to push home sales back to 2018 levels, making May the seventeenth consecutive month of year-over-year declines. With mortgage rates remaining low ahead of the busy summer home-buying season, some speculate that the slowing sales pace could reverse course.

“Rates of 4 percent, and in some cases even lower create extremely attractive conditions for consumers,” said Lawrence Yun, NAR’s chief economist. “Job creation and a rise in inventory will nonetheless drive more buyers to enter the market.”

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: home purchase, National Association of Realtors, Mortgage rates, home purchases, Pending Home Sales