Pending Home Sales Increase, Slightly
Pending home sales rose slightly, 0.5%, in September to 104.6 from 104.1 in August, marking a “stabilizing trend,” according to the National Association of Realtors.
“This shows that buyers are out there on the sidelines waiting to jump in once more inventory becomes available and the price is right,” said Lawrence Yun, NAR chief economist. “So even though affordability has been falling recently, the demand for housing should remain steady.”
However, the September increase should be taken with a grain of salt. Year-over-year, contract signings dropped 1% marking the ninth straight month of annual decreases, according to the report. Lack of inventory is still a factor, so too are rising interest rates.
The 30-year-fixed rate mortgage inched up 1-basis point to 4.86% for the week ending October 25, 2018, according to the Mortgage Bankers Association. “We expect rates to continue to rise which will put downward pressure on homebuying activity,” said Freddie Mac in a statement. “While higher borrowing costs will keep some people out of the market, buyers with more flexibility could take advantage of the decreased competition.”