Morning Report: Pending Home Sales fall

Posted on December 31, 2020 by Brent Nyitray

Vital Statistics:

 

  Last Change
S&P futures 3720 -4.3
Oil (WTI) 47.92 -0.44
10 year government bond yield   0.92%
30 year fixed rate mortgage   2.78%

Stocks are flattish as we end out 2020. Bonds and MBS are flat as well.

 

Pending Home Sales fell 2.6% in November, according to NAR. Year-over-year contract signings were up.

“The latest monthly decline is largely due to the shortage of inventory and fast-rising home prices,” said Lawrence Yun, NAR’s chief economist. “It is important to keep in mind that the current sales and prices are far stronger than a year ago.”

“The market is incredibly swift this winter with the listed homes going under contract on average at less than a month due to a backlog of buyers wanting to take advantage of record-low mortgage rates,” Yun said.

 

For 2021, NAR predicts existing home sales will rise 10% and new home sales will rise 20%. The mortgage rate will rise slightly from 2.7% to 3%.

 

Initial Jobless Claims fell to 787k last week.

 

Other than that, have a Happy New Year and see you on the other side.

Filed under: Economy, Morning Report | 56 Comments »

%d bloggers like this: