Latest news with #PendingHomeSalesIndex
Int'l Business Times
5 days ago
- Business
- Int'l Business Times
Housing Market Softens, With Rising Inventory And Stabilizing Demand
U.S. housing market dynamics are shifting this June, with growing inventory levels and stabilizing buyer interest beginning to alter long-standing conditions in the market. New home sales dropped 13.7% in May to a seasonally adjusted pace of 623,000 units—marking the lowest level since October 2024. This sharp decline was most pronounced in the South and Midwest, according to Business Insider, reflecting increasing affordability challenges faced by buyers. Meanwhile, homebuilders are reporting approximately 507,000 newly constructed homes ready for sale—consistent with a supply buffer of nearly 10 months, as noted by the same source. Despite cooling in the new-construction segment, signs of recovery are emerging in the existing-home market. The Pending Home Sales Index—measuring signed contracts on existing homes—increased 1.8% in May to 72.6, surpassing analyst expectations, as reported by Reuters. All four U.S. regions showed gains, driven primarily by strong job and wage growth, though high mortgage rates continue to impede broader affordability. One key relief factor is a recent dip in borrowing costs. The 30‑year fixed-rate mortgage rate eased to roughly 6.77%, its lowest in seven weeks, supported by renewed hopes for a Federal Reserve rate cut this summer, according to Reuters in the same report. The combination of these trends—ample new and resale inventory, alongside slightly lower mortgage costs—suggests a gradual shift toward a more balanced housing market after years of overheating. First-time buyers, in particular, may find renewed opportunities if downward pressure on rates continues. Still, median home prices remain stubbornly high, keeping the market challenging for many. Analysts warn that true affordability hinges not just on rate declines but also on continued wage growth and manageable inflation.
Yahoo
5 days ago
- Business
- Yahoo
NAR Pending Home Sales Report Reveals 1.8% Increase in May
Pending Home Sales: May 2025 WASHINGTON, June 26, 2025 (GLOBE NEWSWIRE) -- Month-Over-Month 1.8% increase in pending home sales All four U.S. regions experienced increases Year-Over-Year 1.1% increase in pending home sales Pending home sales increased in the Midwest and South but decreased in the Northeast and West Pending home sales increased by 1.8% in May from the prior month and 1.1% year-over-year, according to the National Association of Realtors® Pending Home Sales report. All four U.S. regions experienced month-over-month increases – most notably the West. Year-over-year, contract signings rose in the Midwest and South, while they fell in the Northeast and West. This report equips real estate professionals who are Realtors® with valuable information that helps them serve their clients and get to their next transaction. 'Consistent job gains and rising wages are modestly helping the housing market,' said NAR Chief Economist Lawrence Yun. 'Hourly wages are increasing faster than home prices. However, mortgage rate fluctuations are the primary driver of homebuying decisions and impact housing affordability more than wage gains.' Regarding regional differences, Yun added, 'The Northeast's housing shortage is boosting home prices, with more than a quarter of homes selling above list price. Conversely, more inventory in the South gives home buyers greater negotiation power. Price declines in the South should be considered temporary given the region's strong job creation.' May 2025 National Snapshot May 2025 Pending Home Sales 1.8% month-over-month increase. 1.1% year-over-year increase. May 2025 Regional Snapshot Northeast 2.1% month-over-month increase. 0.5% year-over-year decrease. Midwest 0.3% month-over-month increase. 2.6% year-over-year increase. South 1.0% month-over-month increase. 2.0% year-over-year increase. West 6.0% month-over-month increase. 1.2% year-over-year decrease. The percent of change in pending home sales is based on the Pending Home Sales Index (PHSI)* – a forward-looking indicator of home sales based on home-contract signings. An index of 100 is equal to the level of contract activity in 2001. About the National Association of Realtors®The National Association of Realtors® is involved in all aspects of residential and commercial real estate. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics. For free consumer guides about navigating the homebuying and selling transaction processes – from written buyer agreements to negotiating compensation – visit # # # *The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. Pending contracts are good early indicators of upcoming sales closings. However, the amount of time between pending contracts and completed sales is not identical for all home sales. Variations in the length of the process from pending contract to closed sale can be caused by issues such as buyer difficulties with obtaining mortgage financing, home inspection problems, or appraisal issues. The index is based on a sample that covers about 40% of multiple listing service data each month. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months. An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population. NOTE: Existing-Home Sales for June will be reported on July 23. The next Pending Home Sales Index will be released on July 30. All release times are 10 a.m. Eastern. View the NAR Statistical News Release Schedule. Information about NAR is available at This and other news releases are posted in the newsroom at Statistical data in this release, as well as other tables and surveys, are posted in the 'Research and Statistics' tab. Attachment Pending Home Sales: May 2025 CONTACT: Lauren Cozzi National Association of REALTORS® 202/383-1178 LCozzi@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
US pending home sales rise more than expected in May
WASHINGTON (Reuters) -Contracts to buy previously owned U.S. homes increased more than expected in May, but higher mortgage rates remain a constraint for buyers. The National Association of Realtors said on Thursday its Pending Home Sales Index, based on signed contracts, increased 1.8% to 72.6 last month. Sales rose in all four regions. Economists polled by Reuters had forecast contracts, which become sales after a month or two, would edge up 0.1%. Pending home sales advanced 1.1% from a year earlier. "Consistent job gains and rising wages are modestly helping the housing market, said Lawrence Yun, the NAR's chief economist. "However, mortgage rate fluctuations are the primary driver of homebuying decisions and impact housing affordability more than wage gains." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-06-2025
- Business
- Yahoo
How To Negotiate a Lower Mortgage Rate, According to Experts
Although mortgage rates continue to stay below 7%, rates for a 30-year fixed-rate mortgage ticked up to 6.89% in the last week of May 2025, according to data from Freddie Mac. Be Aware: Read More: Prospective buyers seeking ways to afford a mortgage might be wondering whether they can negotiate their mortgage rate. Read on for more details about the current state of the housing market and mortgage rates, as well as how to negotiate a lower mortgage rate. Rising mortgage rates and growing recession fears have slowed home sales this spring, in spite of sales typically ticking up as summer approaches. The latest National Association of Realtors Pending Home Sales Index, with data for April 2025, shows a 6.3% decline in pending home sales compared with March 2025. It's the biggest monthly drop since 2022, according to a report from HousingWire. 'Despite an increase in housing inventory, we are not seeing higher home sales,' NAR chief economist Lawrence Yun said in a public statement, per HousingWire. 'Lower mortgage rates are essential to bring home buyers back into the housing market.' But is it possible for prospective homebuyers to negotiate a lower rate? 'Rates are negotiable, to a point,' said Renee Coleman, mortgage lender at CrossCountry Mortgage. 'Lenders have certain rules that they must follow. They typically cannot give you a better rate than the next person. That said, there is some wiggle room allowed.' Here are more details on how to negotiate a lower mortgage rate. Check Out: Your interest rate depends on many factors — and not all are related to market conditions. Your credit score, debt-to-income ratio, loan-to-value ratio, down payment, loan amount and even your region can affect your mortgage interest rate. To put yourself in the best negotiating position, focus on the factors you can control, such as boosting your credit score by paying down debt and checking your credit reports for errors. If you've been researching how to find a mortgage, you probably know that you need to shop around with multiple lenders. Don't be afraid to look for an independent mortgage broker who can help streamline that work. 'Working with an independent mortgage broker will give you more flexibility because they can shop multiple lenders for you to find a low rate and low cost,' said Brian Green, senior loan advisor at Xpert Home Lending. A lower interest rate can save you tens of thousands of dollars over time. But as the market shifts to favor buyers, you can also think creatively and ask for concessions. In the first quarter of 2025, 44.4% of sellers agreed to concessions, according to a Redfin report. 'You can request a reduction in points, origination fees or even waiving the appraisal fee,' Green said. If you approach negotiations with the right attitude and come armed with knowledge, securing a lower rate could be as simple as asking. 'Being transparent that you plan on talking to multiple lenders before making a decision helps make sure each lender is putting their best foot forward,' Green said. 'Some lenders have a lot of mobility when setting pricing, so don't be afraid to ask if they can do better.' If your lender says yes to a lower interest rate, make sure you know what that entails, Coleman advised. 'If you simply ask your lender to match a rate to compete with another lender, they are likely to say 'yes' but may not tell you if you'd have to pay points,' she said. Points, or interest rate 'buydowns,' are upfront payments that lower your interest rate. You're paying the money at closing in exchange for savings on your monthly payment. To determine the true cost of the mortgage, compare APRs to determine whether you are getting a deal. 'If your interest rate is 6.5%, and the APR is 6.7%, that includes the cost to do the loan, including points. If someone else quotes you 6.5% and their APR is 7%, you know that this lender is charging you a lot more for your points,' she explained. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? 6 Hybrid Vehicles To Stay Away From in Retirement This article originally appeared on How To Negotiate a Lower Mortgage Rate, According to Experts
Yahoo
31-05-2025
- Business
- Yahoo
Mortgage rates rise for third straight week, hover near 7%
Mortgage rates increased for the third straight week and continue to hover near the 7% level, mortgage buyer Freddie Mac said Thursday. Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed that the average rate on the benchmark 30-year fixed mortgage rose to 6.89% from last week's reading of 6.86%. It marked the highest level since Feb. 6, when the rate on a 30-year mortgage also averaged 6.89%. The average rate on a 30-year loan was 7.03% a year ago. "Aspiring buyers should remember to shop around for the best mortgage rate, as they can potentially save thousands of dollars by getting multiple quotes," said Sam Khater, Freddie Mac's chief economist. When Leaving The House To Your Heirs Backfires The average rate on the 15-year fixed mortgage climbed to 6.03% from last week's reading of 6.01%. One year ago, the rate on the 15-year fixed note averaged 6.36%. Read On The Fox Business App These States Were The Housing Market Mvps, According To Meanwhile, the National Association of Realtors on Thursday said that its Pending Home Sales Index, based on signed contracts, dropped by 6.3% to 71.3 last month. Economists polled by Reuters had forecast contracts, which become sales after a month or two, falling 1%. Pending home sales declined by 2.5% from a year earlier. "At this critical stage of the housing market, it is all about mortgage rates," said NAR chief economist Lawrence Yun. "Despite an increase in housing inventory, we are not seeing higher home sales. Lower mortgage rates are essential to bring home buyers back into the housing market." Reuters contributed to this article source: Mortgage rates rise for third straight week, hover near 7% Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
