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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

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 - Wednesday May 20, 2015

Posted by The Aramco Group on Wed, May 20, 2015 @ 18:05 PM

Home prices continue to rise as inventory stays low 

Low home inventories in the San Diego area propelled the median home price up to $455,000 in April 2015, an increase of 4.6 percent from the same time last year. 

One can see how San Diego home inventories are not keeping up with demand if one compares monthly active listings to increases in pending home sales. The number of active listings has increased only 4.3 percent (5,912 to 6,166) between January 2015 and April 2015, but the number of pending home sales increased 59.3 percent (3,347 to 5,332) over the same period. There is still less than a two month supply of active listings in the San Diego area in May (6,500) according to the San Diego Association of Realtors, so expect home prices to keep appreciating.

Meanwhile, homebuyers may have a little bit more time to continue shopping before the Federal Reserve raises interest rates. Minutes from the April 28-29 Fed policy meeting, released May 20, revealed that only a few officials thought they would have enough confidence to raise rates by June.

Potential homebuyers will still find fixed mortgage rates near historic lows. 30-year fixed mortgage rates average 3.875 percent while 15-year rates average 3.125 percent.

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.

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Topics: home sales, home prices, 30 year fixed rates, Housing, Selling, Home Inventories, Demand, Pending Home Sales, Buying