Pending Home Sales Show First Monthly Rise In Months

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Peoples Home Equity comments on today's pending home sales report.

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it was the 4th consecutive month where sales showed a decline on a year-over-year basis

November pending homes sales were reported today, December 30th, showing the first monthly gain in 6 months. However, Peoples Home Equity was hardly surprised by 0.2% rise in sales for last month as the lender anticipated a meager monthly increase at best. Mortgage rates reacted by declining.

The National Association of Realtors announcement of November pending home sales may seem positive on the surface; however, it was the 4th consecutive month where sales showed a decline on a year-over-year basis. Today’s news was not surprising for Peoples Home Equity as the lender mentioned on the morning of Sunday, December 29th, that it was not expecting anything positive “due to past continued weakness.” What was surprising was that the NAR report claimed that sales in the western part of the United States rose 1.8%. This news was surprising since California, a major real estate market, were said to have experienced a double digit decline in pending home sales for November, according to MortgageNewsDaily.

To the advantage of prospective home loan applicants, mortgage rates reacted to the news by declining 0.03 from 4.65% last Friday to 4.62% today. If continued weakness is seen, Peoples Home Equity highly encourages home buyers to apply for a low rate mortgage or homeowners to refinance. With the onset of the Federal Reserve tapering the asset repurchase program, mortgage rates are expected to rise dramatically once home sales pick up again in the spring season. Peoples Home Equity finds its better to at least apply for a purchase mortgage or refinance opportunity now before it becomes too expensive! If mortgage rates are barely declining now on mixed/negative news, just imagine how high mortgage rates will travel on positive news.

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

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