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US Pending Home Sales Plunge To Record Lows In April As Rates Rose (After Terrible Mortgage Report)
Confounded Interest ^ | 05/30/2024 | Anthony B. Sanders

Posted on 05/30/2024 8:44:35 AM PDT by Kaiser8408a

With the terrible mortgage applications index from Wednedsay, we are seeing US pending home sales crashiing. As Joe Biden handles the economy his way.

After an unexpected jump in March, pending home sales were expected to drop 1.0% MoM in April as mortgage rates pushed back above 7.00% and stayed there.

Well, the analysts had the direction right but magnitude was way off as pending home sales plunged 7.7% MoM – the biggest drop since Feb 2021 (and below the lowest estimate), leaving sales down 0.7% YoY…

Source: Bloomberg

This is the 29th straight month of YoY declines for non-seasonally-adjusted pending home sales.

This MoM decline pushed the Pending Home Sales Index back to record lows…

Source: Bloomberg

The Midwest saw the biggest drop in pending sales, down 9.5% in April, followed by declines of 8.5% and 7.6% in the West and South, respectively. Contract signings in the Northeast fell 3.5%.

“The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market,” NAR Chief Economist Lawrence Yun said in a statement.

“But the Federal Reserve’s anticipated rate cut later this year should lead to better conditions, with improved affordability and more supply.”

All driven by affordability crisis as mortgage rates surged back above 7.00%…

Source: Bloomberg

“The prospect of measurable home price declines appears minimal,” Yun said.

“The few markets experiencing price declines will be viewed as second-chance opportunities for buyers to enter the market if those regions continue to add jobs.”

As a reminder, the pending-sales report tends to be a leading indicator of sales of previously owned homes, because houses typically go under contract a month or two before they’re sold.

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Food; Government; Politics
KEYWORDS: housing; mortgage; realty

1 posted on 05/30/2024 8:44:35 AM PDT by Kaiser8408a
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To: Kaiser8408a

Jill Biden: “Not Joe’s fault!”


2 posted on 05/30/2024 8:46:07 AM PDT by CatOwner (Don't expect anyone, even conservatives, to have your back when the SHTF in 2021 and beyond.)
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To: Kaiser8408a
With all of the bad news for the economy and democrats in general I am waiting for this:

Some outlet, The View, CNN, MSNBC, etc...there will be a story that...

"with all of the bad news coming out at the same time is there a conspiracy against Biden being perpetrated by some right-wing money man or cabal somewhere?

3 posted on 05/30/2024 8:48:54 AM PDT by frogjerk (More people have died trusting the government than not trusting the government.)
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To: Kaiser8408a

Things are just going swimmingly, aren’t they, Deep State.

All according to your plan.


4 posted on 05/30/2024 8:48:58 AM PDT by mewzilla (Never give up; never surrender!)
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To: CatOwner

Another story destined to be buried in the MSM landfill


5 posted on 05/30/2024 8:49:37 AM PDT by gibsonguy ( )
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To: Kaiser8408a
But the Federal Reserve’s anticipated rate cut later this year should lead to better conditions

LOL anticipated by who?
6 posted on 05/30/2024 8:50:44 AM PDT by bankwalker (Repeal the 19th ...)
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To: mewzilla

What did you think “Build Back Better” meant?

Joe is here for the Destruction Phase.


7 posted on 05/30/2024 8:51:23 AM PDT by dfwgator (Endut! Hoch Hech!)
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To: CatOwner

Joe Biden: “The economy is doing great. You deplorable peons don’t know how good you have it.”


8 posted on 05/30/2024 8:51:31 AM PDT by ProtectOurFreedom (“When exposing a crime is treated like a crime, you are being ruled by criminals” – Edward Snowden)
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To: Kaiser8408a

I notice a lot of my neighbors (by the beach in Jupiter/Juno Beach) are renovating their homes. There is construction all over the place.

Probably means they’re looking to cash out w/ a cash buyer, and their $20-$40K cost will more then come back to them in the sale.


9 posted on 05/30/2024 8:59:48 AM PDT by FLNittany (Autotune is jealous of Karen Carpenter)
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To: gibsonguy

The source article is MSM ...


10 posted on 05/30/2024 9:11:54 AM PDT by TexasGator
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To: FLNittany

“I notice a lot of my neighbors (by the beach in Jupiter/Juno Beach) are renovating their homes. There is construction all over the place.

Probably means they’re looking to cash out w/ a cash buyer, and their $20-$40K cost will more then come back to them in the sale.”

We are renovating because we like our house and the 3% mortgage.


11 posted on 05/30/2024 9:13:49 AM PDT by TexasGator
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To: FLNittany

“Probably means ... “

We know our neighbors


12 posted on 05/30/2024 9:15:50 AM PDT by TexasGator
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To: Kaiser8408a

This is the worst real-estate market in history. The last 12 months has less transactions percentage wise per population than ever. The average person can’t buy a house. Forget the poor. Thank the democrats voters for ruining real-estate.


13 posted on 05/30/2024 10:19:24 AM PDT by factmart ( )
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To: factmart

We have criminals running the United States’ government with an iron-fist.

What do we expect?


14 posted on 05/30/2024 10:24:22 AM PDT by Scott from the Left Coast (We have not yet achieved peak crazy)
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