Home sales jump for month but headwinds remain

Contract signings to purchase existing homes climbed successful January for nan second period successful a row to nan highest monthly level since June 2020, but saw a steep driblet nationwide year-over-year.

The National Association of Realtors reported Monday its pending location income scale surged 8.1% past period successful a awesome astonishment to economists polled by Refinitiv, who had expected only a 1% increase. 

"Buyers responded to amended affordability from falling mortgage rates successful December and January," NAR main economist Lawrence Yun said successful a statement.

NEW HOME SALES BEAT WALL STREET'S EXPECTATIONS

Pending location transactions tumbled 24.1% connected an annualized ground successful January, and nan NAR does not expect nan lodging marketplace to regain its footing connected that measurement for different year.

Near nan bottom?

Open location astatine a location for waste successful Evesham Twp., N.J., Feb. 26, 2023. (Fox News)

"Home income activity looks to beryllium bottoming retired successful nan first 4th of this year, before incremental improvements will occur," Yun said. "But an yearly summation successful location income will not hap until 2024. Meanwhile, location prices will beryllium dependable successful astir parts of nan state pinch a insignificant alteration successful nan nationalist median location price."

Yun expects yearly existing-home income to driblet 11.1% successful 2023 to a full of 4.47 cardinal units earlier jumping 17.7% successful 2024 (5.26 cardinal units). NAR projects new-home income will autumn 3.7% year-over-year successful 2023 earlier increasing 19.4% successful 2024.

NAR besides predicts median existing-home prices will beryllium unchangeable compared to nan erstwhile twelvemonth for astir markets — pinch nan nationalist median location value decreasing by 1.6% successful 2023, to $380,100, earlier regaining affirmative traction of 3.1% successful HIGH-INTEREST,800. 

EXPERT SOUNDS ALARM ON HIGH INTEREST RATES BEING THE ‘NEW NORMAL,’ LEAVING REAL ESTATE ‘EXTREMELY CHALLENGED’

Mortgage rates

"For Sale" motion stands successful beforehand of a location successful Rochester, N.Y., Jan. 17, 2022. The National Association of Realtors reported contracts for existing homes roseate month-over-month, but dropped by 24.1% connected an yearly basis. (AP Photo/Ted Shaffrey / AP Images)

Meanwhile, mortgage rates person risen for nan past 3 weeks, putting added unit connected prospective buyers seeking alleviation from inflated location prices and elevated liking rates.

The mean complaint for a 30-year fixed-rate owe deed 6.5% past week, up from 3.89% a twelvemonth agone according to nan latest information from owe purchaser Freddie Mac. The 15-year fixed-rate statement now averages 5.76%, up from 3.14% nan aforesaid week past year.

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FOX Business' Megan Henney and Jay Spoehel contributed to this report.