NATIONAL Housing Market Update: Pending Home Sales Rise to Near Two-Year High

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NATIONAL Housing Market Update

Pending Home Sales Rise to Near Two-Year High:

Signed contracts for U.S. home resales rose to a nearly two-year high in January, further evidence of a budding recovery in the housing market.

The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in January, increased 2 percent to 97.0 — the highest reading since April 2010. Contracts signed were up 8.0 percent in the 12 months to January.

A nascent recovery is under way in the housing market, with the supply of both new and previously owned homes on the market being whittled down in recent months.

What Happened to Rates Last Week?


Mortgage backed securities (MBS) moved sideways from last Friday to the prior Friday to close unchanged from the prior week.
The market saw the lowest mortgage rates on Monday and the highest mortgage rates on Thursday.
MBS had a big sell off (which caused mortgage rates to rise) on a couple of key factors:
We had much better than expected economic news with the Case-Shiller Home Price Index falling much less than market forecasts.
Pending Home Sales, Consumer Confidence and the Chicago Purchasing Manager's Index were all much better than market expectations.
The Fed's Plosser stated that in his opinion, the Fed may have to increase their Fed funds rate sooner than the 2014 forecast.
Ben Bernanke testified before the Congress and Senate and in both cases did not mention a pressing need for another round of stimulus which also helped to pressure MBS.
But MBS climbed off of their worst levels on Friday in the absence of any economic data.


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Office: 800-333-3004 x 3441
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