"Pending home sales, or signed contracts leading up to a sale, fell for the first time in nearly three months, slipping about 1% during the four weeks ending Sept. 21 compared to a year earlier, according to a Redfin report on Thursday. That's despite the weekly average mortgage rate sliding for nine consecutive weeks, hitting an 11-month low of 6.26% after reaching 6.8% at the start of the summer."
"To be sure, lower mortgage rates have sparked a surge in at least one corner of the housing market. Redfin pointed out that mortgage applications to refinance homes jumped 58% in the second week of September from the prior week. But mortgage-purchase applications edged up just 3%, and the anemic sales data are dashing hopes that cheaper borrowing costs will quickly jump start the housing market."
"Redfin highlighted four factors weighing on housing demand: still-elevated home prices, would-be buyers waiting for mortgage rates to go below 6%, muted supply of new listings, and economic uncertainty. Those waiting for mortgage rates to fall further may have already missed their chance, as borrowing costs have started to tick higher again. According to Mortgage News Daily, top-tier 30-year fixed rates were in the high 6.3% range on Friday, flat from the previous Friday."
Pending home sales slipped about 1% during the four weeks ending Sept. 21 compared to a year earlier, marking the first decline in nearly three months. The weekly average mortgage rate fell for nine consecutive weeks to an 11-month low near 6.26%, yet purchase activity remained muted. Existing-home sales dipped 0.2% in August from the prior month and rose only 1.8% year over year. Refinance applications surged about 58% in mid-September while mortgage-purchase applications rose roughly 3%. Factors weighing on demand include elevated prices, buyers waiting for sub-6% rates, limited new listings, and economic uncertainty. Recent hot economic data pushed Treasury yields and some mortgage rates back up, and job growth has not been robust.
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