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U.S. pending home sales rebound in May, reversing a six-month decline

hank
edited June 2022 in Other Investing
“The numbers: U.S. pending-home sales rose in May by 0.7%, according to the monthly index released Monday by the National Association of Realtors. Analysts polled by the Wall Street Journal had forecast the pending home sales index to drop by 4%. This increase breaks a six-month decline, and comes as mortgage rates continue to rise. - MarketWatch

Could be folks are trying to get out ahead of steeper rate increases they may think are coming.

Comments

  • Sven
    edited June 2022
    Hard to say as there are several possible scenarios. For those who has CASH to purchase, they are insensitive to the rate. Higher rate are affecting first time buyers the most and many already being priced out. There are a sizable fraction of family that fall in between these two groups. It is a matter of affordability for the house available. The demand is still strong since many can relocate and work to other cities remotely, even though less so than that of 3 months ago. This trend may slow as many large firms want their workers back to the offices. Also not every professions can work from their computers at home. The supply side of houses and new units being built are still lagging the demand. Will have to see more detail on the home buyer side.

    Also read some buyers can no longer able to keep up with their mortgage payment since they took out adjustable rate mortgages instead of fixed rate ones. They are forced to sell their homes which they purchased in less than a year.
  • Edmond
    A housing market which shows signs of stabilizing .... is one more reason for Jay "Transitory" Powell to keep a'raising rates.
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