Pending home sales tick lower in July as canceled contracts spike
The contracts signed to buy existing houses known as waiting sales were weaker in July in July and have been canceled at least since 2017.
The home sales index, which was waiting monthly from the National Real Estate Association, fell 0.4% in July in July, but it was still 0.7% higher than last year.
In July, the mortgage rates were slightly higher, which can explain some decreases. The average ratio of the popular 30 -year -old fixed mortgage began at July 6.67% and then moved to 6.85% until the middle of the month, according to Mortgage News and ended with 6.75% in July. The ratio fell sharper in August and is currently sitting at 6.51%.
“Mortgage rates, housing supply and modest improvements in the inventory, buyers are still hesitant,” Pomegranate Chief Economist Lawrence Yun said. He said. “Buying a house is often the most expensive purchasing process in their lives. This means that entering the contract is not a quick decision by the landlords.”
Sales not only decrease, but also buyers quickly cancel these contracts. Redfin, a real estate vehicle, found that 15% of the contracts, which have been the highest rate since it began to watch the metropolitan in 2017, were canceled in July. This is based on the Redfin analysis of sales data from MLS, a national list database.
The report found the most common cancellations in San Antonio (22.7%), Fort Lauderdale (21.3%) and Tampa (19.5%), especially in Texas and Florida.
According to the report, Redfin agents referred to the “cold feet” as the main reason for the withdrawal of buyers. Traces of consumers in general feel about the current situation of the economy.
Only 16% of Nar real estate agents said that they expect an increase in the traffic of the buyer within the next 3 months.
Regional July sales fell from month to month in the northeast and Middle West, rising in the south and west.
Realtor.com Senior Economist Jake Krimmel, “a ruthless writing ‘was in general: buyers, sellers remain slow to adjust the expectations, leaving the housing market impartially, buyers continue to be stuck with the difficulties.” He said. “Mortgage rates offered very little relief in July.”
