Pending home sales exceed expectations

Pending home sales exceed expectations

Pending home sales exceed expectations
An index of pending home sales in the U.S. spiked in June, beating experts’ predictions. According to the National Association of Realtors’ Pending Home Sales Index, contract signings to purchase a home increased 16.6 percent in June after a 44.3 percent climb in May. Last month’s increase surprised experts who expected a more moderate increase after many states reimplemented stay-at-home orders.

“It is quite surprising and remarkable that, in the midst of a global pandemic, contract activity for home purchases is higher compared to one year ago,” said Lawrence Yun, NAR’s chief economist. “Consumers are taking advantage of record-low mortgage rates.”

The May and June increases have helped the index recover the ground lost in March and April as the coronavirus pandemic broke out in the U.S.

Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.5 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.