The pending home sales are down 1.3% in July. Is the slow down due to higher rates and higher home prices. But also we have to consider the lack of inventory to blame for the lower sales.
Mortgage applications are down 2.5% for the week!
Average 30 year mortgages are at 4.8% up 12 basis points.
The Day Ahead: Pending Home Sales Index, Syria
Higher mortgage rates and higher prices are now cutting into sales of existing homes. The Pending Home Sales Index, which offers an early signal on final sales of existing homes, is down 1.3 % (109.5)from the July report of 110.9, which is a bit weaker than the Economist consensus for a 1.0 % decline. Pending sales also fell in the June report, down 0.4 percent. The Dow dropped 170 pts, yesterday, with the uncertainty in Syria, but so far this hasn’t affected the 10 yr bond market yet.
Dow is trading at 14,809 +34 the 10 yr bond is at 2.77 from 2.75 Yesterday, . Currently point structure isunchangedfrom Yesterday
Conv. - 4.5%
FHA. - 4.25%
Have a great day!
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