Prior month -5.5% Pending home sales for August 0.6% versus 1.0% expectedIndex comes in at 70.6 versus 70.2 last monthMonth over month, contract signings rose in the Midwest, South and West but dropped in the Northeast.Compared to one year ago, pending home sales decreased in the Northeast, Midwest and South but increased in the West.
Details:
The Pending Home Sales Index (PHSI) increased to 70.6 in August, down 3.0% year-over-year.The Northeast PHSI dropped -4.6% to 61.6 in August, down 2.2% year-over-year.The Midwest index rose +3.2% to 70.0 but declined 3.6% from last year.The South PHSI increased +0.1% to 83.6, down 5.3% year-over-year.The West index grew +3.2% to 58.0, up 2.7% year-over-year.Housing affordability has improved due to falling mortgage rates, expected to continue as long-term mortgage rates approach 6%.Mortgage savings on a $300,000 loan could be around $300 per month compared to a few months ago.
NAR Chief Economist Lawrence Yun said:
“A slight upward turn reflects a modest improvement in housing affordability, primarily because mortgage rates descended to 6.5% in August. However, contract signings remain near cyclical lows even as home prices keep marching to new record highs.”
The mortgage rates are now down near 6.10%. That is down from 7.8% at its peak in the 4Q of 2023.
This article was written by Greg Michalowski at www.forexlive.com.
