Pending Home Sales Rose Sharply in January

Not only did pending home sales increase for the second month in a row in January, but the increase was the largest since the June 2020 rebound from the pandemic plunge. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI) rose 8.1 percent in January to a reading of 82.5. This was on top of a 2.5 percent gain in December. [pendinghomesdata] The PHSI is based on contracts to purchase existing single-family homes, townhouses, condominiums, and cooperative apartments. It is a leading indicator of existing home sales over the following one to two months. Prior to the December uptick, pending home sales had fallen for 13 straight months. Last month’s PHSI reading was down 24.1 percent compared to the January 2022 level of 108.7. The Index was benchmarked at 100 in 2001. Analysts polled by both Econoday and Trading Economics had been expecting only a 1.0 percent increase in pending sales. NAR Chief Economist Lawrence Yun said, “Buyers responded to better affordability from falling mortgage rates in December and January. Home sales activity looks to be bottoming out in the first quarter of this year, before incremental improvements will occur,” He expects that we will not see an annual gain in home sales until 2024. “Meanwhile, home prices will be steady in most parts of the country with a minor change in the national median home price,” he said. NAR anticipates that the economy will continue to add jobs throughout 2023 and 2024, with the 30-year fixed mortgage rate steadily dropping to an average of 6.1 percent in 2023 and 5.4 percent in 2024.

February 27, 2023 Download our Mobile App: Download our Mobile App: Housing News Pending Home Sales Rose Sharply in January Not only did pending home sales increase for the second month in a row in January, but the increase was the largest since the June 2020 rebound from the pandemic plunge. The National Association of Realtors® (NAR) said its Pending Home Sales Index (... (read more) Mortgage Rate Watch Mortgage Rates a Bit Lower to Begin The Week Mortgage rates began the new week on a modestly positive note. The average lender is now quoting conventional 30yr fixed loans at a slightly lower rate than last Friday afternoon. That said, the changes are modest, to say the least... (read more) MBS Commentary Bonds Hold Ground Despite Onslaught of Corporate Issuance Bonds Hold Ground Despite Onslaught of Corporate Issuance The day began with bonds rallying back into positive territory after Durable Goods came in slightly weaker than expected. Some of those gains ma... (read more) Rob Chrisman Non-QM, Marketing, HELOC Servicing, Automation Products ; Credit Trends Here in Las Vegas (Why did the Dalai Lama go to Las Vegas? Because he loves Tibet) the population is about 650,000 with all manners of housing, subdivisions, and lifestyles. But around the nation and world, there are numerous ways and places to live.... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.78% -0.10% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.78% -0.10 0.00 15 Yr. Fixed 6.20% -0.05 0.00 30 Yr. FHA 6.30% -0.05 0.00 30 Yr. Jumbo 6.40% -0.02 0.00 5/1 ARM 6.55% -0.05 0.00 30 Yr. VA 6.32% -0.08 0.00 Updates Daily - Last Update: 2/27 15 Yr. Fixed Rate 6.20% -0.05% Rate Change Points Freddie Mac 30 Yr. Fixed 6.50% +0.18 0.00 15 Yr. Fixed 5.76% +0.25 0.00 Updates Weekly - Last Update: 2/23 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.62% +0.23 0.75 15 Yr. Fixed 5.98% +0.13 0.93 30 Yr. Jumbo 6.44% +0.18 0.53 Updates Weekly - Last Update: 2/22 MBS / Treasuries UMBS 30YR 5.0 98.23 +0.20 Price / Yield Change MBS UMBS 5.0 98.23 +0.20 UMBS 5.5 99.81 +0.16 GNMA 5.0 98.81 +0.20 GNMA 5.5 100.36 +0.19 Pricing as of: 2/27 5:31PM EST 10 Year US Treasury 3.9180 -0.0291 Price / Yield Change US Treasury 2 YR Treasury 4.782 -0.031 5 YR Treasury 4.170 -0.042 7 YR Treasury 4.073 -0.042 10 YR Treasury 3.918 -0.029 30 YR Treasury 3.927 -0.003 Pricing as of: 2/27 5:31PM EST Latest Video It's silly to think rate cuts will come in 2023, says Jefferies' David Zerv... Market hasn't priced in a high terminal rate, says Wealth Enhancement Group... The Fed wants to make sure it's done its job, says ARK Invest's Cathie Wood January pending home sales jumped 8.1% from December Around the Web Eye on Housing Apartment Absorption Rate Falls but Remains above 60% Calculated Risk Blog Measures of Shelter in the CPI and PCE price indexes Still Increasing Calculated Risk Blog Housing February 27th Weekly Update: Inventory Decreased 1.6% Week-over-week CNBC Treasury yields fall slightly as caution returns over inflation outlook CNBC As new data shows inflation rose in January, here's what consumers can expect next CNBC Key Fed inflation measure rose 0.6% in January, more than expected Calculated Risk Blog New Home Sales Increase to 670,000 Annual Rate in January; New Home Average Prices Down 5.3% Year-over-year Calculated Risk Blog Personal Income increased 0.6% in January; Spending increased 1.8% CNBC Fed's Mester says she has hope that inflation can be brought down without a recession CNBC European markets set to start the new trading week on a positive note Calculated Risk Blog Q1 GDP Tracking: Close to 2% Wall Street Journal Commerce Report to Detail Consumer Spending, Inflation in January CNBC Treasury yields little changed as investors assess Fed minutes, data

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