Pending sales of existing homes increased by 1.8% in May, raising hopes for a stronger housing market after a weak spring. The increase, based on signed contracts, signals potential for improved home sales during the summer. Despite persistently high mortgage rates averaging 6.82%, consumer confidence improved following changes in tariffs and a diminished recession risk. All four U.S. regions reported gains, particularly the West with a 6% increase. However, rising prices with affordability concerns mean that mortgage rates will significantly influence demand moving forward.
"Consistent job gains and rising wages are modestly helping the housing market, with hourly wages increasing faster than home prices. However, mortgage rate fluctuations are the primary driver of homebuying decisions and impact housing affordability more than wage gains."
"The uptick in May could signal a stronger summer for home sales as conditions turn more buyer-friendly, with rising price cuts and inventory in many markets."
Collection
[
|
...
]