An Insider’s Look Into How Secondary Marketing Evaluates LOs

In this webinar we’ll explore the long-term financial impacts of renegotiations, extensions and fallouts, plus basic guidelines to be viewed as a professional by your secondary marketing department

HousingWire Annual Virtual Summit

Sessions from HousingWire Annual 2021 are going to be virtually streamed on October 25. Register now for FREE to tune into what housing industry leaders had to say this year!

How Freddie Mac is addressing affordable housing challenges

Freddie Mac is focused on addressing limited access to credit, housing inequalities, creation and preservation of affordable housing supply and advancement of homeownership education.

A NAR board member tells (almost) all

For this week’s Houses in Motion, a miniseries that is part of HousingWire Daily, we spoke with Lisa Dunn about the pressing issues in real estate, including disclosure of agent commission.

Investments

Pending home sales see second biggest monthly drop since May 2010

NAR thinks it may be time for existing owners to trade up

Pending home sales fell a very steep 3.7% in December, according to the National Association of Realtors.

All major regions experienced declines in December and this was the second worst monthly drop since May 2010.

The decline was not expected and well below analyst expectations.

Final sales of existing homes did pop higher in last week's report for December but amid a still flat trend. Today's pending sales report doesn't point to any improvement, which is a bit of a mystery given how low mortgage rates are and how strong the job market is. 

The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 3.7% to 100.7 in December from a slightly downwardly revised 104.6 in November but is 6.1% above December 2013 (94.9).

Lawrence Yun, NAR chief economist, says fewer homes available for sale and a slight acceleration in prices likely led to December’s decline in contract signings.

“Total inventory fell in December for the first time in 16 months, resulting in fewer choices for buyers and a modest uptick in price growth in markets throughout the country,” he said. “With interest rates at lows not seen since early 2013, the strength in existing-sales in upcoming months will largely depend on the willingness of current homeowners to realize their equity gains from the past couple years and trade up.

 “More jobs, increasing consumer confidence, less expensive mortgage insurance and new low down payment programs coming into the marketplace will likely lead to more demand from first-time buyers,” he said.

The PHSI in the Northeast experienced the largest decline, dropping 7.5% to 82.1 in December, but is still 6.3% above a year ago.

In the Midwest the index decreased 2.8% to 97.1in December, but is 1.9% above December 2013. 

Pending home sales in the South declined 2.6% to an index of 116.6 in December, but are 8.6% above last December. The index in the West fell 4.6% in December to 94.0, but is 6.3% above a year ago. 

Total existing-homes sales in 2015 are forecast to be around 5.26 million, an increase of 6.6% from 2014. The national median existing-home price for all of this year is expected to increase between 4 and 5%. In 2014, existing-home sales declined 3.1% and prices rose 5.8%.
 

Most Popular Articles

FHFA to make desktop appraisals permanent

Desktop appraisals, a temporary flexibility implemented in March 2020 amid lockdowns and social distancing, will become permanent, the FHFA said today.

Oct 18, 2021 By

Latest Articles

Mortgage execs better prepare for redlining enforcement

Since Rohit Chopra was confirmed as the new director of the CFPB in September, there’s been one particular word on the lips of mortgage executives. And it gives them chills: redlining. HW+ Premium Content

Oct 20, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please