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Pending Home Sales Rose in June for the Fifth Straight Month

By
Real Estate Agent with Edwards Real Estate Group, Inc.

Some surprisingly good news on the housing market hit the wires this week. Pending Home Sales rose in June for the fifth straight month, fueled by low home loan rates and bargain home prices.

Bonds and home loan rates definitely showed some serious energy and persistence this week, despite some serious headwinds, including additional supply flooding the market from this week's big Treasury auctions.

The Treasury unloaded an enormous supply of paper onto the markets last week and anytime there is more supply than demand, it means prices will naturally decline. And when prices decline, home loan rates go up. The heavy supply hitting the market caused some wild volatility for rates midweek, but overall home loan rates managed to find some improvement by the end of the week.

It won't be long before another enormous supply of Treasuries comes on the market. In just two weeks, we'll be looking at a fresh round of auctions. It used to be that the dates of economic news would be circled on the calendar as the ones to watch for greater movement in Bond prices but right now, the supply issue has become so important that it now may be the most dominant current factor in Bond pricing and home loan rates.

David J Edwards

Real Estate Agent & REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
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The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

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