Industry Update: the Future of eClosing and RON

Join industry experts for an in-depth discussion on the future of eClosing and how hybrid and RON closings benefit lenders and borrowers.

DOJ v. NAR and the ethics of real estate commissions

Today’s HousingWire Daily features the first-ever episode of Houses in Motion. We discuss the Department of Justice’s recent move to withdraw from a settlement agreement with the NAR.

Hopes for generational investment in housing fade in DC

Despite a Democratic majority, the likelihood of a massive investment in housing via a $3.5 trillion social infrastructure package appears slim these days. HW+ Premium Content

How Biden’s Neighborhood Homes proposal impacts real estate investors

Dubbed the Neighborhood Homes Tax Credit, the proposal is part of the larger American Jobs Plan legislation — also known as Biden’s infrastructure plan. Here's a look into how it impacts real estate investors.

Real Estate

Pending home sales continue to slip as 2021 approaches

Contract signings still remain higher than last year

U.S. pending home sales slid for the third consecutive month in November, dropping 2.6% from October, according to a report from the National Association of Realtors. However, year-over-year contract signings were still up by 16.4%.

“The latest monthly decline is largely due to the shortage of inventory and fast-rising home prices,” said Lawrence Yun, NAR’s chief economist. “It is important to keep in mind that the current sales and prices are far stronger than a year ago.”

Home prices reached a 14-year high in October, according to CoreLogic’s Case-Shiller index covering home prices. The National Index is now up 24.5% from its former high in July 2006, and was up 8.4% year over year.

As 2021 approaches, Yun predicts that there will be a slight uptick in mortgage rates to around 3%, existing-home sales will increase by roughly 10% and new home sales will increase by 20%.

Now that a second stimulus package has been passed and two vaccines are being administered, Yun said economic growth is guaranteed, but high government borrowing will put modest upward pressure on interest rates.


Streamlining the refinance process in this low mortgage rate environment

Here’s how lenders can spend less time on redundant requests, resulting in reduced application-to-close turn-times, less operational waste and more closed loans.

Presented by: WFG

Pending home sales fell the most in the West by 4.7%, but still remained 10.4% higher than a year ago. Pending home sales decreased the least in the South, falling 1.1% in November, but were 21.3% higher than last year.

In the Northeast, pending home sales fell 3.3% in November, but is still up 15.3% from last year. The Midwest saw about the same, as its index fell 3.1% but is still up 14.1% from last year.

“The market is incredibly swift this winter with the listed homes going under contract on average at less than a month due to a backlog of buyers wanting to take advantage of record-low mortgage rates,” Yun said.

New home sales and existing home sales both also ticked down last month. Sales of newly built homes dipped 11% below October’s revised rate, but was still 21% higher than the same time period last year, according to the Census Bureau. Existing home sales decreased 2.5% in November, ending its five-month streak of month-over-month gains. Compared to last November, existing home sales were still up 25.8%, NAR said.

Leave a comment

Most Popular Articles

The housing market is losing steam

Mortgage applications for new home purchases decreased 3% from May and 23.8% year over year, suggesting buyer fatigue in the housing market.

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

Log In

Forgot Password?

Don't have an account? Please