{"id":1529858,"date":"2022-06-27T17:20:06","date_gmt":"2022-06-27T21:20:06","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1529858"},"modified":"2022-06-27T17:20:11","modified_gmt":"2022-06-27T21:20:11","slug":"pending-home-sales-unexpectedly-surge-even-as-mortgage-rates-near-6","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/pending-home-sales-unexpectedly-surge-even-as-mortgage-rates-near-6\/","title":{"rendered":"Pending Home Sales Unexpectedly Surge Even As Mortgage Rates Near 6%"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fpending-home-sales-unexpectedly-surge-even-as-mortgage-rates-near-6%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1529858&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Pending <a href=\"http:\/\/dailywire.com\/topic\/housing\">home sales<\/a> inched higher last month despite seeing declines for most of the past year.<\/p>\n<p>The National Association of Realtors\u2019 Pending Home Sales Index rose 0.7% in May \u2014 even as transactions fell year-over-year by 13.6%.<\/p>\n<p>\u201cDespite the small gain in pending sales from the prior month, the housing market is clearly undergoing a transition,\u201d NAR Chief Economist Lawrence Yun said in a <a href=\"https:\/\/www.nar.realtor\/newsroom\/pending-home-sales-edge-higher-0-7-in-may\">press release<\/a>. \u201cContract signings are down sizably from a year ago because of much higher mortgage rates.\u201d<\/p>\n<p>Indeed, the 30-year fixed rate mortgage <a href=\"https:\/\/www.dailywire.com\/news\/mortgage-rates-hit-highest-level-in-over-a-decade\">began climbing<\/a> precipitously at the beginning of 2022, according to data from government-backed mortgage company <a href=\"https:\/\/fred.stlouisfed.org\/series\/MORTGAGE30US\">Freddie Mac<\/a>. Beginning at slightly over 3% in January, the mortgage rate surpassed 5.75% earlier in June.<\/p>\n<p>The rise in mortgage rates corresponds with the Federal Reserve <a href=\"https:\/\/www.axios.com\/2022\/05\/18\/fed-mortgage-portfolio\">tapering<\/a> its aggressive monetary stimulus. In response to COVID-19 and the lockdown-induced <a href=\"http:\/\/dailywire.com\/topic\/recession\">recession<\/a>, the central bank ramped up its purchase of <a href=\"https:\/\/www.dailywire.com\/news\/watch-powell-admits-that-fed-policies-are-behind-high-home-prices\">mortgage-backed securities<\/a>, leading to a decline in mortgage costs. In addition to discharging the securities, monetary policymakers are <a href=\"https:\/\/www.dailywire.com\/news\/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades\">hiking interest rates<\/a> \u2014 most recently, by a 0.75% increment that represented the boldest move to combat <a href=\"http:\/\/dailywire.com\/topic\/inflation\">inflation<\/a> in nearly three decades.<\/p>\n<p>Monthly mortgage payments for the median single-family home have increased by $800 since the beginning of the year, according to the National Association of Realtors. The organization noted that the housing market differs in various regions of the United States. While the West \u2014 where real estate is the priciest \u2014 saw the largest drop in contract activity, the Northeast and South saw increases. All four regions saw year-over-year decreases in pending sales.<\/p>\n<p>Existing home sales fell by 3.4% in May, according to more National Association of Realtors <a href=\"https:\/\/www.nar.realtor\/newsroom\/existing-home-sales-fell-3-4-in-may-median-sales-price-surpasses-400000-for-the-first-time\">data<\/a>, even as the median national sale price surpassed $400,000 for the first time.<\/p>\n<p>Among other factors, high prices are driven by persistent mismatches between the supply and demand for new homes. As of last summer, the United States had an <a href=\"https:\/\/www.nar.realtor\/newsroom\/once-in-a-generation-response-needed-to-address-housing-supply-crisis\">underbuilding gap<\/a> of 5.5 million to 6.8 million units.<\/p>\n<p>\u201cThere is a strong desire for homeownership across this country, but the lack of supply is preventing too many Americans from achieving that dream,\u201d Yun said at the time. \u201cIt\u2019s clear from the findings of this report and from the conditions we\u2019ve observed in the market over the past few years that we\u2019ll need to do something dramatic to close this gap.\u201d<\/p>\n<p>Even amid the long-term shortages, analysts from the Federal Reserve Bank of Dallas <a href=\"https:\/\/www.dailywire.com\/news\/unhinged-and-abnormal-fed-warns-of-housing-bubble-as-average-cost-of-new-homes-hits-record-high\">forecasted<\/a> a housing bubble due to \u201cmarket exuberance\u201d that is \u201cunhinged from fundamentals\u201d \u2014 a warning that has not been issued since the housing market crash of 2008.<\/p>\n<p>\u201cAn asset \u2014 in this case, housing \u2014 is in the primary expansionary phase of a bubble when price rises are out of step with market fundamentals,\u201d they wrote. \u201cRapid real house-price appreciation, such as that observed now, does not in itself signal a bubble\u2026 But real house prices can diverge from market fundamentals when there is widespread belief that today\u2019s robust price increases will continue. If many buyers share this belief, purchases arising from a \u2018fear of missing out\u2019 can drive up prices and heighten expectations of strong house-price gains.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pending home sales inched higher last month despite seeing declines for most of the past year. The National Association of Realtors\u2019 Pending Home Sales Index rose 0.7% in May \u2014 even as transactions fell year-over-year by 13.6%. \u201cDespite the small gain in pending sales from the prior month, the housing market is clearly undergoing a &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1433916,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1529858","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1529858","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1529858"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1529858\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1433916"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1529858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1529858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1529858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}