U.S. pending home sales continue to rise as it recorded its second straight month of increase in contract activity in June. This rising trend prompted NAR to raise its forecast for the U.S. housing market.
The latest PHSI data released by the National Association of Realtors shows an increase of 16.6 percent in pending home sales in June. The figure is also 6.3 percent higher compared to the same period last year. June's pending home sales data easily beat the prior monthly gain prediction of 12.5 percent.
NAR chief economist Lawrence Yun described the gain as "surprising and remarkable." Amid a global pandemic, he said, home purchase contract activity managed to rise from its level one year ago. Record-low mortgage rates are helping boost consumer buying confidence.
Mortgage rates fell anew last July 29, 2020, Bankrate reported. The 30-year fixed-rate mortgage dipped 3 basis points to a new record-low of 3.30. One year ago, the 30-year fixed-rate mortgage was 3.97.
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Housing market forecast revised
This apparent turn around in the U.S. housing market prompted NAR to revise its forecast. For 2020, NAR predicts existing-home sales to drop by just three percent. Sales are expected to climb up 5.6 million by Q4 of 2020. Meanwhile, new home sales are expected to climb by three percent.
In 2021, existing and new home sales are projected to rise seven percent and 16 percent, with positive GDP growth of four percent. Over the coming 18 months, mortgage rates are expected to remain at near three percent level.
The latest pending home sales data follows the existing-home sales for June; it was released last week by the National Association of Realtors. Existing-home sales surged 20.7 percent in June to a seasonally adjusted rate of 4.72 million. The median existing-home sale price for all housing types was $295,300. That value represents an increase of 3.5 percent from the same period in 2019.
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All regional indices grew
U.S. pending home sales continue to rise as it recorded its second straight month of increase in contract activity in June. This rising trend prompted NAR to raise its forecast for the U.S. housing market.
The latest PHSI data released by the National Association of Realtors shows an increase of 16.6 percent in pending home sales in June. The figure is also 6.3 percent higher compared to the same period last year. June's pending home sales data easily beat the prior monthly gain prediction of 12.5 percent.
NAR chief economist Lawrence Yun described the gain as "surprising and remarkable." Amid a global pandemic, he said, home purchase contract activity managed to rise from its level one year ago. Record-low mortgage rates are helping boost consumer buying confidence.
Mortgage rates fell a new last July 29, 2020, Bankrate reported. The 30-year fixed-rate mortgage dipped 3 basis points to a new record-low of 3.30. One year ago, the 30-year fixed-rate mortgage was 3.97.
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