U.S. Pending Home Sales Rise to 69,109 as 6.83% Mortgage Rates Test Housing Demand
Updated
Updated · HousingWire · Aug 2
U.S. Pending Home Sales Rise to 69,109 as 6.83% Mortgage Rates Test Housing Demand
3 articles · Updated · HousingWire · Aug 2
Summary
Weekly pending home sales reached 69,109 last week, up from 68,413 a year earlier, extending year-over-year growth even as demand has softened with mortgage rates above 6.64%.
Mortgage spreads near 2% have kept rates at 6.83% instead of pushing them above 7%, cushioning the market despite a 4.74% 10-year Treasury yield, a hawkish Fed and Iran-driven oil and inflation pressure.
Other demand gauges also stayed positive but weakened: total pending sales rose to 396,572 from 386,561, while purchase applications fell 4% week over week and were up just 3% from a year earlier.
Affordability has also improved because wages have outpaced home-price growth, which has held around 1%-2%, helping offset higher borrowing costs.
Inventory rose to 872,932 from 865,233 in the latest week, and the outlook now hinges on jobs data, Fed speeches and whether the Iran conflict keeps rates elevated.