Existing Home Sales Slide Back to Pre-Pandemic Levels

April, May, and June of 2020 were the only 3 months where Existing Home Sales suffered as a result of the pandemic. During those three months, the annual pace averaged roughly 4.4 million versus the last pre-pandemic reading of 5.4 million. That number jumped to nearly 6 million in July and didn't show any serious signs of contraction until February of 2022. What's up with the history lesson? The most important past data point in this case is that 5.4 million mark from March 2020 because today's report marks the first time that sales have returned to that level after skyrocketing for most of the past 2 years. In other words, pandemic housing boom notwithstanding, sales of existing homes are still in great shape. There are disclaimers, of course. Rates have risen sharply and the recent trend is not yet showing signs of bottoming. NAR's chief economist, Lawrence Yun, concurs, "Further sales declines should be expected in the upcoming months given housing affordability challenges from the sharp rise in mortgage rates this year. Nonetheless, homes priced appropriately are selling quickly and inventory levels still need to rise substantially – almost doubling – to cool home price appreciation and provide more options for home buyers." Inventory is ahead of last year's pace, but at 2.6 vs 2.5 months, just barely! One thing that has not yet shown much sign of cooling is the surge in prices, which hit another record in this report. Be aware though, because this data isn't seasonally adjusted, prices will likely see their normal seasonal decline in the coming months.

June 21, 2022 Download our Mobile App: Download our Mobile App: Housing News Existing Home Sales Slide Back to Pre-Pandemic Levels April, May, and June of 2020 were the only 3 months where Existing Home Sales suffered as a result of the pandemic. During those three months, the annual pace averaged roughly 4.4 million versus the last pre-pandemic reading of 5.4 million. Tha... (read more) Rob Chrisman Pricing, Broker, Jumbo, Fee Collection Products; STRATMOR Survey; Investor ARM News Here in Honolulu, talk among those gathered for the MBA Hawai’i annual conference includes the rise in adjustable-rate mortgage lending by depositories, and the impact of inflation, and the Federal Reserve fighting it, on home loan rates and interest... (read more) Mortgage Rates Mortgage Rates Hit 6%. World is Not Ending. May Just Be Beginning 30 Yr. Fixed Rate 6.07% +0.04% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.07% +0.04 0.00 15 Yr. Fixed 5.44% +0.07 0.00 30 Yr. FHA 5.58% -0.02 0.00 30 Yr. Jumbo 5.15% +0.10 0.00 5/1 ARM 5.38% +0.05 0.00 30 Yr. VA 5.70% -0.02 0.00 Updates Daily - Last Update: 6/21 15 Yr. Fixed Rate 5.44% +0.07% Rate Change Points Freddie Mac 30 Yr. Fixed 5.10% -0.15 0.90 15 Yr. Fixed 4.31% -0.12 0.80 5/1 Yr. ARM 4.20% +0.12 0.30 Updates Weekly - Last Update: 5/26 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 5.33% -0.13 0.51 15 Yr. Fixed 4.72% 0.00 0.63 30 Yr. Jumbo 4.93% -0.09 0.41 Updates Weekly - Last Update: 6/1 MBS / Treasuries UMBS 30YR 4.5 99.23 -0.08 Price / Yield Change MBS UMBS 4.5 99.23 -0.08 UMBS 5.0 101.06 -0.06 GNMA 4.5 100.41 -0.01 GNMA 5.0 101.59 -0.44 Pricing as of: 6/21 5:21PM EST 10 Year US Treasury 3.2806 +0.0493 Price / Yield Change US Treasury 2 YR Treasury 3.196 +0.026 5 YR Treasury 3.367 +0.023 7 YR Treasury 3.376 +0.044 10 YR Treasury 3.281 +0.049 30 YR Treasury 3.349 +0.067 Pricing as of: 6/21 5:21PM EST Latest Video Lennar home prices may come down to offset higher interest rates, says Exec... Redfin CEO on layoffs: We should've handled it earlier, that's on me High home prices collide with high mortgage rates The 2pm Bond Report — June 21, 2022 Around the Web Reuters Lennar flags home demand cooldown as surging interest rates spook buyers CNBC Sales of existing homes fell in May, and more declines are expected CNBC Chinese manufacturing orders decline by 20-30%, according to shippers, as consumers pull back on buying goods CNBC U.S. Treasury yields rise as investors await fresh economic data, auctions Calculated Risk Blog Realtor.com Reports Weekly Inventory Up 17% Year-over-year Calculated Risk Blog DOT: Vehicle Miles Driven Increased Slightly year-over-year in April CNBC Sales of existing homes fell in May, and more declines are expected CNBC Fed promises 'unconditional' approach to taking down inflation in report to Congress Calculated Risk Blog Q2 GDP Forecasts: Moving Down CNBC Insana: Be careful what you wish for as the Fed steps up aggression on monetary policy CNBC Home remodeling could finally cool, bringing these stocks back to earth CNBC Powell vows that the Fed is 'acutely focused' on bringing down inflation Calculated Risk Blog Industrial Production Increased 0.2 Percent in May

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