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Buyers are getting cold feet as mortgage rates exceed 7%: Redfin

Housing Wire

Buyers facing high mortgage rates are pulling out of their home-purchase agreements at the highest rate in nearly a year. Rates last month surged to 7.23%—the highest since 2001 – sending the typical homebuyer’s monthly payment up significantly from last year. That rate is up from 14.3% The median U.S.

Buyers 424
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Pending home sales recede in January: NAR

Housing Wire

For comparison, the index is benchmarked at a reading of 100 based on 2001 contract activity. ” Lower mortgage rates buoyed buyer demand in early 2024, but rates started to inch back up toward 7% in February. NAR’s Pending Home Sales Index (PHSI) decreased to 74.3 in January, down from 77.3 in December.

Contracts 419
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Pending home sales fall to their lowest level in two decades

Housing Wire

Pending home sales in October fell to their lowest level since 2001. It dropped on an annual basis for the sixth consecutive month NAR chief economist Lawrence Yun is optimistic that declining mortgage rates will help qualify more home buyers in the months ahead, but limited housing inventory will remain the sticking point.

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Pending home sales fell 7.1% in August

Housing Wire

An index of 100 is equal to the level of contract activity in 2001. Mortgage rates have been rising above 7% since August, which has diminished the pool of home buyers,” Lawrence Yun, NAR chief economist said. Buyers are hitting affordability ceilings, causing some of them to sit out the market.

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Pending home sales are down 31% from last year

Housing Wire

An index of 100 is equal to the level of contract activity in 2001. The Federal Reserve has had to drastically raise interest rates to quell inflation, which has resulted in far fewer buyers and even fewer sellers.”. Only when inflation is tamed will mortgage rates retreat and boost home purchasing power for buyers.”.

Contracts 525
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Pending home sales fall 38% in November

Housing Wire

An index of 100 is equal to the level of contract activity in 2001. Pending-home sales in November reflect a freeze in the housing market, as buyers remain on the sideline and sellers are staying put,” Odeta Kushi, First American’s deputy chief economist, said in a statement.

Contracts 504
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Pending home sales rose 0.9% in July

Housing Wire

An index of 100 is equal to the level of contract activity in 2001. “Jobs are being added and, thereby, enlarging the pool of prospective home buyers. Buyers are being forced to lengthen their home search since there are so few properties available for sale,” she said.

Inventory 426