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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 April 1, 2015

Posted by The Aramco Group on Wed, Apr 1, 2015 @ 16:04 PM

Pending home sales in California rocketed to their largest increase in six years. According to the California Association of Realtors (CAR) the state’s February-to-February pending home sales rose 15.6 percent on the Pending Home Sales Index. It is the third year in a row with an increase; it is the first time with a double-digit gain since 2012; and it is the single largest increase since April 2009. CAR’s California-specific index, like other larger national indexes, measures transactions when the contract is signed but the total sale has not yet closed — as it can take up to six weeks for a deal to be finished. Some sales fall through but most usually do not, so California’s housing market will have a bullish summer.

Meanwhile conforming no point 30 year fixed mortgage rates average 3.625 percent while 15-year rates average 3.0 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.

Ask Mehran Aram

Topics: Pending Home Sales Index, Housing Market, California Association of Realtors, Housing, housing recovery, homes

ARAMCO Report - Monday March 30, 2015

Posted by The Aramco Group on Tue, Mar 31, 2015 @ 10:03 AM

Contracts have been signed — a lot of them. The Pending Home Sales Index tracks the number of contracts people have entered into with the intent of purchasing a previously-owned home—as opposed to tracking the number of closed sales—and the number of contracts signed in February rose to the highest level sine June of 2013. Would-be sales rose 3.1 percent for the month and have risen 12 percent since this time last year according to the National Association of Realtors, the group that publishes the report. This boost was mainly driven by gains here in the West and in the Midwest, and is further evidence of the U.S. housing market’s renewed strength. Meanwhile conforming no point 30 year fixed mortgage rates average 3.75 percent with 15-year rates closer to 3 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.

Ask Mehran Aram

Topics: home sales, Pending Home Sales Index, Housing Market, 30 year fixed rates, National Association of Realtors, Contracts, Closed Sales