October 28, 2013
Statement from LIA Chief Economist John Rizzo on NAR Pending Sales Figures
By: Dr. John A. Rizzo
"The National Association of Realtors' Pending Home Sales Index declined by 5.6% in September from August, and by 1.2% from a year ago. This pattern may reflect higher mortgage rates and rising home prices. Mortgage rates did continue to tick upward in September, rising to 4.49% for a conventional 30- year mortgage, up from 4.46% in August. This rate was 3.47% a year ago. However, the 30-year fixed rate declined to 4.13% in late October, its lowest level in four months. This is a positive sign for the housing recovery. Despite today's results for pending sales, year-over-year actual sales in September 2013 were 10.7% higher, the 27th consecutive year-over-year increase. Moreover, the recent decline in mortgage rates may serve to bolster sales going forward."