Pending Sales of U.S. Existing Homes Up 10.4%

[Purveyor]

The number of Americans signing contracts to buy previously owned homes rose more than forecast in October as buyers took advantage of falling prices and low borrowing costs.

The index of pending home sales increased 10.4 percent, the biggest gain since November 2010, after falling 4.6 percent the prior month, figures from the National Association of Realtors showed today in Washington. Economists forecast a 2.0 percent increase, according to the median estimate in a Bloomberg News survey.

While mortgage rates near record lows are helping some buyers purchase housing that’s growing more affordable as prices drop, 9 percent joblessness and tight lending standards are keeping others out of the market. A new wave of foreclosures may augment the property oversupply, triggering further slides in value and delaying an industry recovery.

“Any improvement in sales and building activity in the housing market is welcome,” Ellen Zentner, senior U.S. economist at Nomura Securities International Inc. in New York, said before the report. “While there has been no impetus for a renewed downturn in housing, there’s been no impetus as of yet for a turn upward.”

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http://www.bloomberg.com/news/2011-11-30/pending-sales-of-existing-u-s-homes-exceed-forecasts-with-10-4-increase.html

[Peter1x9]

1. It's a good time to buy...if you have a good job and some money.

A lot of people don't have either right now.

[bemildred]

2. Yep, but no hurry about it. nt

[3waygeek]

3. Mortgage rates have definitely gone down...

just got my annual rate adjustment notice on my FHA adjustable mortgage. Next year's rate will be 2.125%, down from 2.625% this year. I've had this mortgage since 1993 -- it was 5.5% then. The FHA adjustable is tightly regulated -- it can only adjust once per year, and by at most 1% per year or 5% total. It's not a huge savings -- only about $20 per month -- since I'm on the back half of the 30-year term, most of the payments go toward principal.

One wonders how many foreclosures would have been prevented if all ARMs were regulated like the FHA's.