The focus has been less on housing but more on inflation data in FOMC circles recently, but on Thursday, we received very weak pending-home-sales data that puts housing front and center again. Housing was humming along, so to speak, with interest and mortgage rates still low, but in August something very interesting happened.All parties do come to an end.
Pending home sales fell by 2.5% in August, suggesting that potential buyers were apprehensive. What might make buyers apprehensive in a housing market that has been driven by extremely low mortgage rates? We could easily point the finger to the risk of higher rates, but that usually has a spurring influence on the purchasing decision, so we need to look at that in another way.
Friday, September 30, 2016
Posted by Steve Bartin at 7:48 AM