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Pending home sales retreat for 16th consecutive month

Posted by Mehran Aram on Sat, Jun 1, 2019 @ 08:06 AM

Even with falling mortgage rates in recent weeks, pending home sales, which are a measure of signed contracts to purchase existing homes, dropped 1.5 percent in April, compared to March. On a year-over-year basis contract signings fell by two percent – the sixteenth consecutive month of annual declines.

The decline in pending home sales, according to data from the National Association of Realtors, is not indictive of the health of the overall housing market and points to other, more positive trends.

“Though the latest monthly figure shows a mild decline in contract signings, mortgage applications and consumer confidence have been steadily rising,” said NAR’s Chief Economist Lawrence Yun. “It’s inevitable for sales to turn higher in a few months.”

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 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: Housing Market, National Association of Realtors, Mortgage applications, NAR, Mortgage rates, Pending Home Sales, Existing Homes, Signed Contracts

December pending home sales drop to lowest level six years

Posted by Mehran Aram on Fri, Feb 1, 2019 @ 09:02 AM

Pending home sales declined on a monthly and yearly basis in December according to new information from the National Association of Realtors. The latest Pending Home Sales Index, released this week for the month of December, shows a 2.2 percent decline compared to the month prior and a dramatic 9.8 percent drop compared with December 2017. This marks 12 straight months of annual declines and the lowest December reading since 2013.

Contracts to purchase existing homes, frequently referred to as pending sales, are a strong indicator of future home sales. The end-of-year slump coincided with significant volatility on Wall Street.

“The stock market correction hurt consumer confidence,” said NAR’s chief economist Lawrence Yun. He added that mortgage rates, which have since declined, were elevated in October and November when these contracts were signed.

Today, conventional conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent, 15-year rates are near 3.875 percent and the 5-year ARM is averaging 4.375 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: Pending Home Sales Index, National Association of Realtors, existing home sales, NAR, Mortgage rates, Pending Home Sales, Existing Homes

ARAMCO Report - Friday January 23, 2015

Posted by Mehran Aram on Thu, Jan 29, 2015 @ 14:01 PM

According to the National Association of Realtors in 2014 existing home sales fell by 3.1% compared to 2013. But the median sales price rose 5.8% and inventory was down to a 4.4 month supply. Meanwhile delinquencies fell 7.2% in December and mortgage rates remain at their lowest level since 2013. Conforming no point 30 year fixed rates average 3 5/8ths with 15 year rates closer to 3%.

And now for something completely different… Did you know that before alarm clocks were affordable or reliable in Britain and Ireland they used a “Knocker-Up.” Yes! He would go door to door to paying customers and wake them up!

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

 Ask Mehran Aram

Topics: home sales, inventory, 30 year fixed rates, NAR, Britain, Mortgage rates, median sales, Ireland

ARAMCO Report - Wednesday July 2, 2014

Posted by Mehran Aram on Wed, Jul 2, 2014 @ 17:07 PM

A larger than expected increase in hiring, according to the private ADP report put some selling pressure on bonds. But mortgage rates remain near their lowest level of the year with conforming no point 30 year fixed rates averaging 4 1/8th and 15 year rates closer to 3 1/8th. Meanwhile the housing recovery continues with foreclosures down substantially and May pending home sales up by 6.1% and year over year, home prices up by 8.8%. This according to NAR and CoreLogic.

And now for something completely different: Mount Everest is growing at almost ½ an inch a year, that’s why a person today has to climb 27 inches higher to reach the peak compared to 1953.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at www.ARAMCO.Biz or call me at (877) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: Reverse Mortgage, Aramco Report, and now for something completely different, home prices, home purchase, Mehran Aram, CoreLogic, Aramco Mortgage, 30 year fixed rates, ADP, NAR, Mount Everest, housing recovery