Monthly Archives: November 2015

Pending Sales of Previously Owned Homes Unexpectedly Fall

October 29, 2015 Contract signings to purchase previously owned homes unexpectedly fell in September by the most since the end of 2013, indicating the residential real estate market is cooling from its recent brisk pace. An index of pending home sales dropped 2.3% in September after a 1.4% decline a month earlier, the National Association of Realtors said Thursday. The decrease exceeded the most pessimistic forecast in a Bloomberg survey of economists. A limited selection of properties may be dissuading some from trading up, while stricter credit standards are making it difficult for others to qualify for loans. At the same time, housing demand will probably be underpinned by cheap borrowing costs and employment opportunities. "There continues to be a dearth of available listings in the lower end of the market for first-time buyers," NAR chief economist Lawrence Yun said in a statement. Still, "with interest rates hovering around 4%, rents rising at a...
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Rates Post Slight Decline as Market Waits on Fed: Freddie Mac

October 29, 2015 Interest rates on 30-year fixed-rate mortgages fell three basis points during the week ending Oct. 29, as the market increasingly expects the Federal Reserve to hold off on raising rates, according to Freddie Mac. The 30-year FRM averaged 3.76%, down from 3.79% a week ago, according to Freddie Mac's Primary Mortgage Market Survey. This was down 22 basis points from 3.98% a year ago. The 15-year fixed-rate mortgage averaged 2.98%, unchanged from a week earlier. It was down from 3.13% on a yearly basis. "Treasury yields oscillated without a clear direction heading into the October FOMC meeting, as investors were confident there would be no rate increase," Sean Becketti, Freddie Mac's chief economist, said in the release. "While the FOMC left rates unchanged at this meeting, they kept a December rate hike as an option causing Treasuries to sell off in the latter part of the day, after our survey closed," Becketti...
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