American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Pending home sales in April slump to lowest level since the start of the pandemic

by admin June 2, 2024
June 2, 2024
Pending home sales in April slump to lowest level since the start of the pandemic

Signed sales contracts on existing homes dropped 7.7% in April compared to March, the slowest pace since April 2020, according to the National Association of Realtors.

These so-called pending sales are a forward-looking indicator of closed sales one to two months later. Pending sales were 7.4% lower than in April of last year.

Sales were expected to be flat compared to March.

Since the count is based on signed contracts, it shows how buyers are reacting to mortgage rates in real time. The average rate on the 30-year fixed mortgage ended March at around 6.9% and then took off, hitting 7.5% by the end of April, according to Mortgage News Daily.

With home prices still climbing and supply very low, leading to increased competition, that jump in rates had a huge effect on sales.

“The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market,” said Lawrence Yun, chief economist for the NAR. “But the Federal Reserve’s anticipated rate cut later this year should lead to better conditions, with improved affordability and more supply.”

Sales were down in every region of the country, but they fell hardest in the Midwest and West. The former has some of the most affordable markets in the nation, and the latter has some of the most expensive.

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

Perhaps in reaction to the slow sales pace in April, the share of sellers cutting prices in May hit 6.4%, the highest level since 2022, according to a new report from Redfin. The median asking price also dropped for the first time in six months.

Active inventory in April was 30% higher than in April 2023, according to Realtor.com, which suggests the summer market could be more active than last year.

“Though inventory and prices are moving in a more buyer-friendly direction, lower mortgage rates will be crucial in bringing both buyers and sellers back into the market,” said Hannah Jones, senior economic research analyst with Realtor.com.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
What’s next for Trump legally? Which case might come up before Election Day?
next post
N.Y. Fed President John Williams says inflation is too high but will start coming down soon

Related Posts

Donald Trump set to receive $1.25 billion worth...

April 24, 2024

Goldman Sachs recommends investing in these two sectors...

January 21, 2025

Short TGT: Target Corp. Faces Continued Pressure after...

December 19, 2024

Europe markets: Aviva’s bid boosts Direct Line, while...

December 6, 2024

European stocks up before ECB decision, Diageo leads...

December 12, 2024

Undervalued but poised for growth: Simply Good Foods...

November 14, 2024

Why did World Liberty Financial transfer $307M in...

February 4, 2025

Long NOTV: Inotiv Inc Q4 2024 Revenue Up...

December 7, 2024

Asian markets close: Nikkei jumps after US tariff...

May 29, 2025

Atlassian stock analysis: is TEAM a buy or...

January 27, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,012)
    • Investing (2,455)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved