U.S.’s August’s pending home sales continued the upward momentum, marking a four-month of uninterrupted positive contract activity, according to a press release. Year-over-year sales were up 20.5% vs estimated 17.6%. Growth due to low mortgage rates below 3% – Lawrence Yun, NAR’s chief economist. Each of four major regions marked month-over-month and year-over-year pending home sales growth.
- 80% of pending home sales settled within two months, but not all pending sales to go closing
- Fed intends to hold short-term fed funds rates near 0% for the foreseeable future to keep mortgage rates low in the absence of inflationary pressures.
- Keeping mortgage rates low to attract homebuyers into the marketplace
Publicly traded stocks gaining on the record pending home sales as risk-fTreasury-linked bond losses. XLF is up 1.77%, IEF is down 0.29%, XHB is up 1.80%.
