EconUpdate by P. Duffy
Pending home sales dip 10.6 percent in February due to limited supply
What does this mean? Although pending sales dipped for the second straight month due to supply concerns, demand remains strong.
The Pending Home Sales Index (PHSI) dropped 10.6% to 110.3 in February. Year-over-year, contract signings fell 0.5%. Each of the four major U.S. regions witnessed month-over-month declines in February, while results were mixed in the four regions year-over-year.
Purchase loan apps dip 2 percent from previous week, but up 39 percent year-on-year
What does this mean? While rising mortgage rates have dented demand for refinances, it remains strong for purchase loans.
The Market Composite Index for mortgage applications decreased 2.2 percent on a seasonally adjusted basis from one week earlier, with purchase loans falling 2 percent (but up 39 percent year-on-year) and refinance activity falling 3 percent (and down 32 percent year-on-year). The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.33 percent from 3.36 percent.
January Case-Shiller Index rises by 11.2 percent year-on-year, highest rate in almost 15 years
What does this mean? Despite the rise in the annual increase, monthly price increases did moderate from December.
The Case-Shiller Index rose 1.2 percent in January and 11.2 percent year-on-year, for the highest annual rate since February 2006. However, the monthly rate of decline slipped from 1.3 percent the previous month.