Pending Home Sales Post a 7.7 Percent Drop

Pending home sales fell another 7.7 percent in April according to the National Association of Realtors® (NAR). NAR’s Pending Home Sales Index (PHSI) for the month was 72.3 compared to 78.3 in March. Based on purchase contracts for previously owned single-family homes, townhouses, condominiums, and cooperative apartments, the Index was also down 7.4 percent from its level in April 2023. [pendinghomesdata] “The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market,” said NAR Chief Economist Lawrence Yun. “But the Federal Reserve’s anticipated rate cut later this year should lead to better conditions, with improved affordability and more supply.” The slowdown in the home sale market is clear when looking at the national PHSI since the Federal Reserve started raising interest rates. The index averaged 115.2 in 2022 and 91.9 in 2023. It has not exceeded 78.5 at any point in 2024. All four major regions lost ground for the month and year-over-year. In the Northeast , the PHSI level of 62.9 was down 3.5 percent from March and 3.1 percent on an annual basis. The Midwest index dropped 9.5 percent to 70.7 percent, a decline of 8.7 percent from one year ago. The South lost 7.6 percent and 8.2 percent compared to the two earlier periods to a reading of 88.6. The West’s Index was at 55.9, a decline of 8.5 percent from March and 7.3 percent from the previous April.

May 30, 2024 Download our Mobile App: Download our Mobile App: Housing News Pending Home Sales Post a 7.7 Percent Drop Pending home sales fell another 7.7 percent in April according to the National Association of Realtors® (NAR). NAR’s Pending Home Sales Index (PHSI) for the month was 72.3 compared to 78.3 in March. Based on purchase contracts for previously owned s... (read more) MBS Commentary Stale PCE Helped; Fresher Version Up Next Stale PCE Helped; Fresher Version Up Next The quarterly vs monthly PCE reports are potential sources of confusion for rate watchers. To be fair, only the monthly version is a dedicated report. The... (read more) Mortgage Rate Watch Mortgage Rates Break 5 Day Losing Streak, But Remain Elevated If we overlook the nearly unchanged performance from last Friday, mortgage rates were on a 5 day losing streak as of yesterday afternoon with the 30yr fixed rising about a quarter of a percent. That streak ended today as the bond market respond... (read more) Rob Chrisman Compliance, LOS, Best-Ex, MSR Valuation Products; 2nd Mortgage and Conv. Conforming News Hey, there is plenty of competition among lenders and among vendors. But, to the best of my knowledge, vendors and lenders aren’t doing this to one another. “There oughta be a law against it!” At the MBA Secondary Conference last week, MBA CEO Bob Br... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.29% -0.05% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.29% -0.05 0.00 15 Yr. Fixed 6.76% -0.04 0.00 30 Yr. FHA 6.82% -0.03 0.00 30 Yr. Jumbo 7.52% -0.02 0.00 7/6 SOFR ARM 7.38% -0.01 0.00 30 Yr. VA 6.84% -0.03 0.00 Updates Daily - Last Update: 5/30 15 Yr. Fixed Rate 6.76% -0.04% Rate Change Points Freddie Mac 30 Yr. Fixed 7.03% +0.09 0.00 15 Yr. Fixed 6.36% +0.12 0.00 Updates Weekly - Last Update: 5/30 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.05% +0.04 0.63 15 Yr. Fixed 6.66% +0.24 0.69 30 Yr. Jumbo 7.22% +0.04 0.43 Updates Weekly - Last Update: 5/29 MBS / Treasuries UMBS 30YR 6.0 100.00 +0.31 Price / Yield Change MBS UMBS 6.0 100.00 +0.31 UMBS 6.5 101.54 +0.24 GNMA 6.0 100.50 +0.26 GNMA 6.5 101.47 +0.28 Pricing as of: 5/30 5:31PM EST 10 Year US Treasury 4.5470 -0.0677 Price / Yield Change US Treasury 2 YR Treasury 4.925 -0.048 5 YR Treasury 4.565 -0.069 7 YR Treasury 4.559 -0.075 10 YR Treasury 4.547 -0.068 30 YR Treasury 4.681 -0.056 Pricing as of: 5/30 5:31PM EST Latest Video April's pending home sales fall 7.7% monthly as higher rates dampen demand The Fed needs more 'confidence' that inflation will be moving sustainably l... Former Vice Chair Roger Ferguson on the key economic reports this week GDP grew less than initially thought in first quarter; inflation reading ea... Around the Web CNBC Mortgage payments have grown the most in this U.S. city over the past 2 yearsit's not New York or San Francisco CNBC Fed's favorite inflation gauge is expected to show very slow progress on Friday Marketwatch Fed's Williams expects inflation to cool in the second half of the year CNBC Bank of America CEO says U.S. consumers and businesses have turned cautious on spending Marketwatch GDP shows U.S. economy grew just 1.3% in the first quarter as consumer spending slowed Marketwatch Jobless claims rise slightly to 219,000 in latest week Calculated Risk Blog Realtor.com Reports Active Inventory Up 36.5% YoY; Most Homes For Sale Since July 2020 Calculated Risk Blog NAR: Pending Home Sales Decrease 7.7% in April; Down 7.4% Year-over-year Marketwatch Why 10-year Treasury yields should fall into year end, based on 60 years of history CNBC Treasury yields fall as investors look to key data Marketwatch U.S. economy is expanding, Feds Beige Book says, but businesses are less gung-ho Calculated Risk Blog Final Look at Local Housing Markets in April and a Look Ahead to May Sales Eye on Housing Home Building Employment across States and Congressional Districts in 2022

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