• Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
Money Profit News
No Result
View All Result
Home Breaking News

Pending home sales rebounded sharply in October, despite rising mortgage rates

by
November 29, 2021
in Breaking News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Related Posts

AAR: January Rail Carloads Increased and Intermodal Decreased Year-over-year

Jury finds Musk, Tesla not liable in securities fraud trial following ‘funding secured’ tweets

I’m 64, make $1,500 a month driving Uber and get almost $5,000 a month in pensions and Social Security – should I pay off my mortgage before I retire?

Jury find Musk, Tesla not liable in securities fraud trial following ‘funding secured’ tweets

A single family home is shown for sale and in escrow in San Marcos, California.

Mike Blake | Reuters

Buyers came roaring back to the housing market in October, even as mortgage rates rose.

Signed contracts on existing homes, so-called pending sales, jumped 7.5% from September, according to the National Association of Realtors. Sales were still 1.4% lower than October 2020, but last fall marked a cyclical high in the housing market.

Pending sales are a forward-looking indicator of sales that will close in one to two months. Wall Street analysts were expecting October pending sales to be flat compared with the month before.

Closed sales in October also rose unexpectedly.

“Motivated by fast-rising rents and the anticipated increase in mortgage rates, consumers that are on strong financial footing are signing contracts to purchase a home sooner rather than later,” said Lawrence Yun, NAR’s chief economist. “This solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still markedly low.”

Sales were strongest in the Midwest and South regions, rising 11.8% and 8.0% month to month respectively.

In the Northeast, pending sales rose 6.9% from October, and in the West they increased 2.1%.

The average rate on the popular 30-year fixed mortgage was just below 3% in mid-September, but climbed to 3.22% by the end of October, according to Mortgage News Daily. Mortgage rates dropped back last Friday, however, on news of the new Omicron variant of the Coronavirus.

Homebuyers, especially those on the lower end of the market, continue to find very few homes listed for sale. Total housing inventoryat the end of October stood at 1.25 million units, down 0.8% from September and down 12.0% from one year ago (1.42 million). At the October sales pace, that represents an extremely low 2.4-month supply. A 4 to 6-month supply is generally considered a balanced market between buyers and sellers.

The fall surge in homebuying, also seen in closed sales in October, rounds out an extremely strong year for the market. Last year’s surge began just a few months after the onset of the pandemic in the U.S., and while many thought it would lose steam, apparently it hasn’t yet.

“The notable gain in October assures that total existing-home sales in 2021 will exceed 6 million, which will shape up to be the best performance in 15 years,” added Yun.

Sales of newly built homes, which are also measured by signed contracts, did fall in October, but that may be due to the fact that big builders are slowing sales in order to deal with supply chain issues in construction.

Next Post

Is AFRM A Buy Now Or A Sell? What Affirm's Fundamentals, IBD Ratings, Stock Chart Say

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Popular Posts

Breaking News

AAR: January Rail Carloads Increased and Intermodal Decreased Year-over-year

by
February 4, 2023
0

by Calculated Risk on 2/03/2023 04:17:00 PM From the Association of American Railroads (AAR) Rail Time Indicators. Graphs and excerpts...

Read more

AAR: January Rail Carloads Increased and Intermodal Decreased Year-over-year

Jury finds Musk, Tesla not liable in securities fraud trial following ‘funding secured’ tweets

I’m 64, make $1,500 a month driving Uber and get almost $5,000 a month in pensions and Social Security – should I pay off my mortgage before I retire?

Jury find Musk, Tesla not liable in securities fraud trial following ‘funding secured’ tweets

Elon Musk Found Not Liable in Trial Over Tweets Proposing to Take Tesla Private

Tech stocks just finished a five-week rally — the longest stretch since market peak in November 2021

Load More

All rights reserved by www.moneyprofitnews.com

  • Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

moneyprofitnews