Pending Home Sales Soaring As Well

Populareconomicsblog

The Mortgage Corner

Watch out, homebuyers! There may be few homes left on the market if the National Association of Realtors’ May Pending Home Sales Index is any predictor of future sales. This is even though mortgage rates have risen almost 1 percent in 3 weeks, as I said last week.

The pending home sales index surged 6.7 percent in May to its highest level since 2006. This has to be because of those rising mortgage rates as prospective buyers want to act before rates could move even higher. The index posted double-digit percentage increases in the Midwest and West. The index level of 112.3 is the highest since the boom days of 2006. The year-on-year gain for the index is 12.1 percent, which is interestingly right in line with double-digit gains for many home-price readings.

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Graph: Wrightson ICAP

To the extent that the surge reflected fence sitters jumping into…

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