The number of contracts to purchase pre-owned homes was unchanged in April. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI), a forward-looking indicator of existing home sales, remained at the March level of 78.9. The index had seen some improvement over the first three months of the year but is now down 20.3 percent on an annual basis. [pendinghomesdata] NAR Chief Economist Lawrence Yun attributed the lackluster sales during what is usually residential real estate’s most active season is due in part to ongoing inventory restraints. He added, “Affordability challenges certainly remain and continue to hold back contract signings, but a sizeable increase in housing inventory will be critical to get more Americans moving. ” While three of the four major regions saw an uptick in new sales contracts, those changes were negated by a sizeable decline in the fourth. The PHSI in the Northeast fell 11.3 percent from March to 59.1 and was 21.8 percent lower than the prior April. The Midwest’s index improved 3.6 percent to 78.4 which was down 21.4 percent on an annual basis.   Pending sales in the South rose 0.1 percent to 99.6 in April while sinking by 16.7 percent year-over-year. A 4.7 percent increase in the West took that PHSI to 62.2, a 26.0 percent decline from April 2022. The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes which are usually finalized within one or two months.  The PHSI was benchmarked at 100 in 2001, a number equal to the average level of contract activity during that year.
MND logo
May 25, 2023
Download our Mobile App:
Download from Google Play
Download from Apple App Store
View the QR Code
Download our Mobile App:
Download from Google Play
Download from Apple App Store
Housing News
The number of contracts to purchase pre-owned homes was unchanged in April. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI), a forward-looking indicator of existing home sales, remained at the March level of 78.... (read more)
Mortgage Rate Watch
It was bad news but big news a few days ago when the average top tier 30yr fixed rate made it back to 7% for the first time since early March.  After trying to stage a modest recovery yesterday, the pain continued today. The bond market (which ... (read more)
MBS Commentary
Debt Ceiling Debate Volatility Causing Issues For Bonds Treasuries sold off in a linear fashion today--much more aggressively than MBS.  The debt ceiling debate is the most logical scapegoat considering ... (read more)
Rob Chrisman
My notes from the MBA’s conference this week continue, including talk about new home sales being +4.1 percent for the month (+11 percent year over year, bringing a smile to builders everywhere). Although most of the focus of the conference was on the... (read more)
Mortgage Rates
MBS / Treasuries