Pending Home Sales In August Surge 4% YoY (Lower Rates Helping, Rates Peaked At 18.63% In 1981)

CMBS, CRE, Economy, Existing Home Sales, fannie mae, Fed, Freddie Mac, GDP, Gold, Housing, Inflation, Mortgage, New Home Sales, Powell, Silver, Treasuries, Treasury, Uncategorized, Volatility, Yellen, Yield Curve 1 Minute

August data for the US housing market has been ‘mixed’ to say the least with a surge in new home sales (thanks to a massive rise in incentives from homebuilders) and a small decline (near multi-year lows), leaving this morning’s pending home sales data as the tie-breaker (with expectations of an ‘unch’ shift MoM).

It appears the drop in mortgage rates is driving some purchase activity as pending home sales soared 4.0% MoM in August – the most since March – dragging sales up 0.5% YoY.

Mortgage rates are falling, helping existing home sales. Note that the 30-year mortgage rate peaked at 18.63% in 1981.

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