My Loan Officer
  • Loading...

New American Focus:
Mortgage & Real Estate

New American Focus: Mortgage & Real Estate

Translating the complexity of the markets into a concise and easy to digest format. Watch videos, read blogs, and view key data on short and medium term trends impacting interest rates, so you can make the right decision for your situation.

Home Sales Look Poised to Bounce Back Big-Time

House keys | Home Sales Look Poised to Bounce Back Big-Time

Based on the most recent data, it looked like home sales were set to slow a bit as the weather cooled off. Then August happened. And now it looks like home sales are ready to speed up instead.

According to a new report from the National Association of Realtors, pending home sales saw “significant gains” in August, rising by 8.1% over July.

August’s increase ends a two-month streak of pending home sales, an indicator of future home sales based on signed real estate contracts, declining. Pending home sales decreased in both June and July.

That trend was reversed in August, with each of the four major regions of the U.S. seeing month-over-month increases in contract activity.

It should be noted that pending home sales in August 2021 were down 8.3% from August 2020. However, the increase in August 2021 over July 2021 was a sizeable one that indicates that home sales are likely to pick in the coming months.

The reason for the increase, according to NAR Chief Economist Lawrence Yun, was an increase in available inventory.

"Rising inventory and moderating price conditions are bringing buyers back to the market," Yun said. "Affordability, however, remains challenging as home price gains are roughly three times wage growth."

Nevertheless, signed contract activity was up across the country, with the highest increases seen in the South and Midwest.

"The more moderately priced regions of the South and Midwest are experiencing stronger signing of contracts to buy, which is not surprising," Yun said. "This can be attributed to some employees who have the flexibility to work from anywhere, as they choose to reside in more affordable places."

According to NAR’s report, pending home sales increased 10.4% in the Midwest, 8.6% in the South, 7.2% in the West, and 4.6% in the Northeast.

Mortgage Credit Availability Increases for Third Straight Month Those seeking a mortgage found it was a little easier to get in September than … Read »
Mortgage Activity Shifts Back Towards Purchase Market For most of the year, the mortgage market has been much more focused on purchase … Read »
Homebuyers’ Good Vibes Fade a Bit as Prices Rise Last month, it appeared that housing market conditions were improving slightly, … Read »
More Evidence That Now is the Best Time to Buy a House A recent report from Realtor.com showed that the best time to buy a house is … Read »

How low will your payment be?