There aren’t any surprises out today. Russia and Ukraine are still fighting in the streets. Pending Home Sales (under contract and not yet closed) are up 3.3%, greater than the 0.5% estimate, and also greater than last month’s negative number.
Stocks are down; the S&P is back under 2000. Interest rates are testing year-long lows right now…Thirty year FHA loans are at 3.5% and Conventional loans are at 4.125%. Fifteen year rates are way lower at 3.0% (APR will be higher, depending on the loan and down payment amounts, and amortization term–as closing costs and the presence of mortgage insurance affect each loan differently.)
Existing Home Sales Rise
Ten years ago, the homeownership rate in the US was 69.2%; today it has fallen to 64.8%. Where the American dream has historically owning your home, this is a sobering thought. On the bright side in the reports out today, more people are buying each other’s homes than last month: Existing Home Sales are up 4.9% from April to May. While it won’t help the Ownership Rate, is does help Realtor commissions 🙂 Also increasing commissions is a price increase of 0.9% from April to May.