Pending home sales reports have been weak for a while, declining over the past 5 consecutive months.
Chicago, IL (PRWEB) December 29, 2013
Tomorrow, Monday, December 30th, the National Association of Realtors will report pending home sales for the month of November. People Home Equity is not expecting anything tomorrow positive due to past continued weakness as well as a recent announcement showing California pending home sales.
Pending home sales reports have been weak for a while, declining over the past 5 consecutive months. The declines have continued for so long that year over year sales have also turned negative over the past couple months. Peoples Home Equity does not expect anything positive on Monday either due to to news that was reported on Monday, December 23rd by MortgageNewsDaily.com that California pending home sales “experienced the first double digit decline drop in over a year in November.” California is a major housing market, and the last pending home sales report was summarized as negative due to a whopping -4.1% decline seen in the western region of the USA. When you couple western weakness with the fact that mortgage applications are at annual lows one cannot have high hopes for Monday’s sales release.
Despite waning real estate sales, limited inventories are not giving prospective home buyers a chance to buy an affordable home. Property values have shown year-over-year price increases for the past 19 consecutive months. Finally to make matter even worse, mortgages have risen relentlessly over the past 12 months. In just the past month, 30-year fixed rates have increased 4.5% from 4.45% on November 29th to 4.65% on December 27th.
Peoples Home Equity notes that it’s unfortunate for prospective home buyers that mortgage rates have not shown a corresponding decline relating to pending sales. However, the lender also emphasizes that that rates may only continue higher since the Federal Reserve has recently begun the tapering of its quantitative easing program. This action is expected to dramatically push mortgage rates higher since they were subdued ever since quantitative easing began in November 2008, 6 years ago. Peoples Home Equity encourages prospective mortgage applicants to face this reality and apply for a home loan before it becomes too expensive!
Peoples Home Equity hopes everyone is enjoying the holiday season. Should one be in need of assistance with applying for a home loan please feel free to contact a PHE loan officer at: (855)-897-0300