EconUpdate by P. Duffy
Pending home sales rebound 8.0 percent in May and 13.1 percent year-on-year
What does this mean? A rise in listings and a dip in mortgage rates during May both assisted in the rebound.
Pending home sales rose 8% in May from the prior month and 13.1% from one year ago. The May 2021 Pending Home Sales Index of 114.7 is the highest reading for May since 2005. Contract signings rose in all regions in May compared to the prior month and one year ago.
Purchase loan apps fall 5 percent from previous week, down 17 percent year-on-year
What does this mean? Higher mortgage rates and home prices limited home contracts last week.
The Market Composite Index for mortgage apps decreased 6.9 percent on a seasonally adjusted basis from one week earlier, with purchase loans falling 5 percent from the previous week and down 17 percent year-on-year, and refinance activity falling 8 percent from the previous week and down 15 percent year-on-year. The average contract interest rate for 30-year fixed-rate mortgages increased to 3.20 percent.
April Case-Shiller Index rises 14.6 percent year-on-year, highest annual increase in over 30 years
What does this mean? Pent-up demand and preference for suburban homes drove the record increase.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 14.6% annual gain in April, up from 13.3% in the previous month, and the highest annual rise since 1988. After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 1.6%.