Daily Newsletter: Pending Sales Faded Along with Inventory in December

Pending home sales fell for the second month in December and are finishing up the year well below their December 2020 level. The National Association of Realtors® (NAR) said its Pending Home Sale Index (PHSI) was down 3.8 percent from November and is 6.9 percent below its level at the end of the prior year. Pending sales had declined 2.2 percent in November. The PHSI, which is based on signed contracts for the purchase of pre-owned single-family houses, townhomes, condos, and cooperative apartments, dipped from 122.4 in November to 117.7. An index of 100 is equal to the level of contract activity in 2001. Analysts polled by Econoday had expected the index to rise 0.6 percent. Those polled for Trading Economics were closer to the mark with a consensus of an 0.2 percent decline. It was an unusually large gap between the two forecasts which are typically nearly identical. [pendinghomesdata] “Pending home sales faded toward the end of 2021, as a diminished housing supply offered consumers very few options,” said Lawrence Yun, NAR’s chief economist. “Mortgage rates have climbed steadily the last several weeks, which unfortunately will ultimately push aside marginal buyers.” Even with December’s slowdown in transactions, Yun says last year was an overall great period for housing in terms of sales and price appreciation . “The market will likely endure a minor reduction in sales as mortgage rates continue to edge higher,” he added. He forecasts the 30-year fixed mortgage rate to jump to 3.9 percent by the fourth quarter.

January 27, 2022 Housing News Pending Sales Faded Along with Inventory in December Pending home sales fell for the second month in December and are finishing up the year well below their December 2020 level. The National Association of Realtors® (NAR) said its Pending Home Sale Index (PHSI) was down 3.8 percent from November and ... (read more) Housing News Freddie Mac Purchased $1.3 Trillion in Loans Last Year Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 13.1 percent in December compared to a 12.0 percent gain in November. The portfolio balance at the end of the period was $3.246 trillion compare... (read more) Rob Chrisman Conforming Conventional Updates; Lender and Broker Services; The Fed Has Spoken Overheard in the hallway: “My email got hacked again. That’s now the third time I’ve had to rename the cat.” But there’s a lot of other conversation and session topics here in the hallways at the IMB in Nashville. Discussion about the rapidity of the... (read more) Mortgage Rates Rates Jump to New 2-Year Highs After Fed Announcement Fed policy is critically important to interest rates and January has marked a shift in the Fed policy outlook. In not so many words, the Fed sees itself hiking rates and decreasing its bond purchased more quickly than previously expected. It has conveyed this in various ways since the beginning of the month. Today's policy announcemen... (read more) 30 Yr. Fixed Rate 3.71% -0.03% Rate Change Points Mortgage News Daily 30 Yr. Fixed 3.71% -0.03 0.40 15 Yr. Fixed 2.95% -0.02 0.40 30 Yr. FHA 3.35% -0.03 0.00 30 Yr. Jumbo 3.33% -0.02 0.00 5/1 ARM 3.62% -0.02 0.50 Updates Daily - Last Update: 1/27 15 Yr. Fixed Rate 2.95% -0.02% Rate Change Points Freddie Mac 30 Yr. Fixed 3.55% -0.01 0.70 15 Yr. Fixed 2.80% +0.01 0.60 5/1 Yr. ARM 2.70% +0.10 0.20 Updates Weekly - Last Update: 1/27 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 3.72% +0.08 0.43 15 Yr. Fixed 3.00% +0.05 0.39 30 Yr. Jumbo 3.56% +0.02 0.38 Updates Weekly - Last Update: 1/26 MBS / Treasuries MBS Live Recap: What do we Make of Today's Bond Bounce? What do we Make of Today's Bond Bounce? After a big sell-off in response to yesterday's Fed announcement, bonds rallied back today. The gains were slow and steady at first, but the pace quickened at 9:30am (a popular time of day for increased momentum in bonds, even though it's the NYSE open). Data was ov... (read more) UMBS 30YR 3.0 102.00 +0.34 Price / Yield Change MBS UMBS 3.0 102.00 +0.34 UMBS 3.5 104.02 +0.08 GNMA 3.0 102.05 +0.34 GNMA 3.5 103.13 +0.16 Pricing as of: 1/27 5:21PM EST 10 Year US Treasury 1.8048 -0.0679 Price / Yield Change US Treasury 2 YR Treasury 1.190 +0.034 5 YR Treasury 1.663 -0.026 7 YR Treasury 1.772 -0.064 10 YR Treasury 1.805 -0.068 30 YR Treasury 2.097 -0.078 Pricing as of: 1/27 5:21PM EST Latest Video Former Fed official Richard Fisher breaks down looming rate hikes and lates... The 2pm Bond Report - January 27, 2022 Pending home sales falls 3.8 percent in December Treasury auctions $53 billion in 7-year notes Around the Web Redfin Housing Market Update: Hottest January on Record Despite 1st Pending-Sales Decline Since June 2020 CNBC Federal Reserve points to interest rate hike coming in March Calculated Risk Blog A Few Comments on Q4 GDP and Investment Redfin Sales, Supply Surge For the Most Affordable U.S. Homes as Mortgage Forbearance Ends Calculated Risk Blog Real House Prices, Price-to-Rent Ratio and Price-to-Median Income in November CNBC More than two-thirds of omicron cases are reinfections, English study suggests CNBC Market treated inflation like a 'puppy dog' and now faces multiple pullbacks, strategist says Reuters U.S. goods trade deficit hits record high; retail inventories surge Calculated Risk Blog Weekly Initial Unemployment Claims Decrease to 260,000 wellsfargo.bluematrix.com 6.9% GDP Is Not Screaming Growth, It's Screeching Brakes zillow.com U.S. Housing Market has Doubled in Value since the Great Recession, Gaining $6.9 Trillion in 2021 CNBC GDP grew at a 6.9% pace to close out 2021, stronger than expected despite omicron spread Reuters U.S. stock futures bounce ahead of Fed, oil gains on Russia-Ukraine

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