Home Sales Are Stabilizing

A stabilizing trend in the national housing market is likely to continue, according to the latest reading on pending home sales published by the National Association of REALTORS.

The Pending Home Sales Index, based on contracts signed in November, eased by 0.5% to 107.0 from an upwardly revised reading of 107.5 in October, and is 11.4% lower than November 2005. The decline from year-ago levels has been steadily narrowing since July, which was 16% lower than the same month in 2005.

David Lereah, NAR’s chief economist, said that “the index is pointing toward fairly stable home sales in the near future,” he said. “That is another indicator that home sales likely bottomed-out in September.”

The index is derived from pending sales of existing homes. A sale is listed as pending when the contract has been signed and the transaction has not closed; pending sales typically are finalized within one or two months of signing. An index of 100 is equal to the average level of contract activity during 2001, the first year to be examined and the first of five consecutive record years for existing-home sales. Nashville has experienced indexes much closer to 115. This is a great market to purchase investment property.

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Nashville Housing Market – July Report
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Home Sales Are Stabilizing

A stabilizing trend in the national housing market is likely to continue, according to the latest reading on pending home sales published by the National Association of REALTORS.

The Pending Home Sales Index, based on contracts signed in November, eased by 0.5% to 107.0 from an upwardly revised reading of 107.5 in October, and is 11.4% lower than November 2005. The decline from year-ago levels has been steadily narrowing since July, which was 16% lower than the same month in 2005.

David Lereah, NAR’s chief economist, said that “the index is pointing toward fairly stable home sales in the near future,” he said. “That is another indicator that home sales likely bottomed-out in September.”

The index is derived from pending sales of existing homes. A sale is listed as pending when the contract has been signed and the transaction has not closed; pending sales typically are finalized within one or two months of signing. An index of 100 is equal to the average level of contract activity during 2001, the first year to be examined and the first of five consecutive record years for existing-home sales. Nashville has experienced indexes much closer to 115. This is a great market to purchase investment property.

If you enjoyed this post, you might also enjoy:
Nashville Housing Market – July Report
Nashville Market Update
Real Estate Trends in Nashville

Rates Are "Flat"

Freddie Mac’s Primary Mortgage Market Survey showed the 30-year fixed-rate mortgage (FRM) averaging 6.18% with an average 0.4 point for the week ending January 4, 2007, unchanged from last week when it averaged 6.18%. Last year at this time, the 30-year FRM averaged 6.21%.

The 15-year FRM on Friday averaged 5.94% with an average 0.4 point, up slightly from last week when it averaged 5.93%. A year ago, the 15-year FRM averaged 5.76%.

“Interest rates were flat this past week, reflecting the mixed messages from recent economic indicators,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The recently released manufacturing report showed improvement, and while new construction spending for November was down, it was still better than expected. On the other hand, a private sector employment report suggested that the labor market was weaker than anticipated. As a result, 30-year fixed-rate mortgage rates started off the year at about the same level as this time last year.”

If you enjoyed this post, you might also like:
Mortgage Rates Hold Steady & Low
Nashville Mortgage Rates Lower, Home Sales Up
Nashville Mortgage Rates Drop, Again

Rates Are "Flat"

Freddie Mac’s Primary Mortgage Market Survey showed the 30-year fixed-rate mortgage (FRM) averaging 6.18% with an average 0.4 point for the week ending January 4, 2007, unchanged from last week when it averaged 6.18%. Last year at this time, the 30-year FRM averaged 6.21%.

The 15-year FRM on Friday averaged 5.94% with an average 0.4 point, up slightly from last week when it averaged 5.93%. A year ago, the 15-year FRM averaged 5.76%.

“Interest rates were flat this past week, reflecting the mixed messages from recent economic indicators,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The recently released manufacturing report showed improvement, and while new construction spending for November was down, it was still better than expected. On the other hand, a private sector employment report suggested that the labor market was weaker than anticipated. As a result, 30-year fixed-rate mortgage rates started off the year at about the same level as this time last year.”

If you enjoyed this post, you might also like:
Mortgage Rates Hold Steady & Low
Nashville Mortgage Rates Lower, Home Sales Up
Nashville Mortgage Rates Drop, Again

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