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By Susanne Dwyer

The housing market is feeling the effects of rising mortgage rates, with pending home sales pulling back to year-lows last month as homebuyers struggled to put purchases in play, according to the National Association of REALTORS® (NAR). NAR’s Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, dipped 2.5 percent to 107.3 in November, down from 110.0 in October.

“The budget of many prospective buyers last month was dealt an abrupt hit by the quick ascension of rates immediately after the election,” says Lawrence Yun, NAR chief economist. “Already faced with climbing home prices and minimal listings in the affordable price range, fewer home shoppers in most of the country were successfully able to sign a contract.”

All is not lost, however. Rising mortgage rates, according to Yun, will be balanced by a more robust growth in wages in the next year.

“Healthy local job markets amidst tight supply means many areas will remain competitive with prices on the rise,” says Yun. “Those rushing to lock in a rate before they advance even higher will probably have few listings to choose from. Some buyers will have to expand the area of their home search or be forced to delay in order to save a little more money for their down payment.”

The Northeast saw the most pending home sales activity in November, with the PHSI up 0.6 percent to 97.5—now 5.7 percent above one year ago. In the Midwest, the Index was down 2.5 percent to 103.5, 2.4 percent below one year ago. Pending home sales in the South were down 1.2 percent to 118.7, 1.3 percent below one year ago. The Index in the West was down 6.7 percent to 101.0, 1.0 percent below one year ago.

Existing-home sales are still expected to close out 2016 at 5.42 million, which will eclipse 2015 (5.25 million) as the highest since 2006 (6.48 million), according to NAR. The national median existing-home price is also still expected to end 2016 at a 5 percent growth rate.

Looking ahead, existing-home sales are expected to come in at 5.52 million in 2017, while the national median existing-home price is expected to grow 4 percent.

For more information, please visit www.nar.realtor.

For the latest real estate news and trends, bookmark RISMedia.com.

The post Market Feels Effects of Rising Rates, Pending Home Sales Pull Back appeared first on RISMedia.

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From:: Finance and Economy

By Susanne Dwyer

The housing market is feeling the effects of rising mortgage rates, with pending home sales pulling back to year-lows last month as homebuyers struggled to put purchases in play, according to the National Association of REALTORS® (NAR). NAR’s Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, dipped 2.5 percent to 107.3 in November, down from 110.0 in October.

“The budget of many prospective buyers last month was dealt an abrupt hit by the quick ascension of rates immediately after the election,” says Lawrence Yun, NAR chief economist. “Already faced with climbing home prices and minimal listings in the affordable price range, fewer home shoppers in most of the country were successfully able to sign a contract.”

All is not lost, however. Rising mortgage rates, according to Yun, will be balanced by a more robust growth in wages in the next year.

“Healthy local job markets amidst tight supply means many areas will remain competitive with prices on the rise,” says Yun. “Those rushing to lock in a rate before they advance even higher will probably have few listings to choose from. Some buyers will have to expand the area of their home search or be forced to delay in order to save a little more money for their down payment.”

The Northeast saw the most pending home sales activity in November, with the PHSI up 0.6 percent to 97.5—now 5.7 percent above one year ago. In the Midwest, the Index was down 2.5 percent to 103.5, 2.4 percent below one year ago. Pending home sales in the South were down 1.2 percent to 118.7, 1.3 percent below one year ago. The Index in the West was down 6.7 percent to 101.0, 1.0 percent below one year ago.

Existing-home sales are still expected to close out 2016 at 5.42 million, which will eclipse 2015 (5.25 million) as the highest since 2006 (6.48 million), according to NAR. The national median existing-home price is also still expected to end 2016 at a 5 percent growth rate.

Looking ahead, existing-home sales are expected to come in at 5.52 million in 2017, while the national median existing-home price is expected to grow 4 percent.

For more information, please visit www.nar.realtor.

For the latest real estate news and trends, bookmark RISMedia.com.

The post Market Feels Effects of Rising Rates, Pending Home Sales Pull Back appeared first on RISMedia.

…read more

From:: Real Estate News

By Susanne Dwyer

In November, sales of new homes hit their second highest peak since 2008, according to data released by the U.S. Census Bureau and the Department of Housing and Urban Development (HUD). While these numbers have been fickle month-to-month, this is a hopeful sign of a surge in demand for the new year to come.

November’s new single-family house numbers came in at a seasonally adjusted annual rate of 592,000. This number is 5.2 percent above the October rate, and 16.5 percent above November 2015’s numbers, which landed at an estimated 508,000.

The average sales price for new homes sold in November was $359,900, while the median sales price was $305,400. This is higher than October’s median price of $302,700, but lower than the $317,000 median recorded in November 2015. At the end of the month, the seasonally adjusted estimate of new houses for sale reached 250,000, a supply of over 5 months if the current sale rate remains.

Source: U.S. Census Bureau

For the latest real estate news and trends, bookmark RISMedia.com.

The post Home Sales Rocket to Second Highest Point Since 2008 appeared first on RISMedia.

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From:: Finance and Economy

United Shore Financial Services will pay $48 million to settle allegations brought by the Department of Justice, which accused United Shore of violating the False Claims Act by “knowingly originating and underwriting” mortgages that did not meet Federal Housing Administration standards, the DOJ announced Wednesday. The settlement makes United Shore just the latest in a long line of mortgage lenders that settled with the DOJ over alleged FHA lending violations. Click the headline to read more. …read more

From:: Real Estate Wire

As more investors and landlords move to list houses and apartments on short-term rental websites, like Airbnb, rather than seek long-term renters, a fight is emerging over the impact this shift has on renters. A new report shows just how contentious the fight over Airbnb is becoming in certain expensive markets, like San Francisco. …read more

From:: Real Estate Wire