All articles tagged with #pending sales
Despite falling mortgage rates over nine weeks, pending home sales have declined for the first time in nearly three months, indicating a stagnant housing market influenced by high home prices, buyer hesitation, limited supply, and economic concerns, with recent data suggesting mortgage rates may be rising again.
Homebuyers in the U.S., including the Twin Cities, are canceling purchase deals at the highest rate in nearly a decade, driven by rising interest rates, economic concerns, and increased options for buyers, especially in the affordable housing market.
The median U.S. home-sale price reached a record $387,600 for the four weeks ending May 19, up 4% year-over-year, while pending home sales fell 4.2% due to high housing costs and limited inventory. Mortgage rates slightly declined to 7.02%, offering minor relief to buyers. Despite an 8% increase in new listings, overall inventory remains below typical spring levels, causing prices to continue rising. Many homeowners are reluctant to sell due to higher current mortgage rates compared to their existing ones.
The U.S. housing market sees a significant increase in new listings, marking the largest uptick in nearly three years, while total inventory remains steady for the first time in nine months. However, high mortgage rates and soaring home prices continue to dampen buyer demand, leading to an 8% decline in pending sales and a fourth consecutive week of decreasing mortgage-purchase applications. Despite this, there is a surge in homebuyer activity as more house hunters take advantage of the increased inventory, with the potential for pending sales to improve in the coming months if mortgage rates stabilize and new listings continue to rise.
Home prices in the U.S. have surged by 6.1% year over year, marking the largest increase in 15 months, while mortgage rates have risen above 7%, contributing to the overall cost of homeownership. This has led to a decline in pending home sales and a decrease in homebuyer demand, partly due to seasonal factors and high housing costs. Sellers are more active than buyers, with new listings up 8% year over year, and experts anticipate a potential increase in activity in the spring. However, the current market conditions are prompting real estate agents to advise both sellers and buyers to act sooner rather than later, as prices are expected to continue rising.
The housing market is experiencing a bumpy start to 2024, with pending sales dropping 8% due to rising mortgage rates and harsh winter weather. High housing costs are also pricing out potential homebuyers, but some house hunters are still touring properties. Redfin's Homebuyer Demand Index has shown a slight increase, and new listings are up 7% year over year. However, mortgage rates are climbing again, impacting demand, while some local lenders are offering rates in the 5% range for new construction projects.