Morning Report: Pending Home Sales fall

Vital Statistics:

 LastChange
S&P futures3720-4.3
Oil (WTI)47.92-0.44
10 year government bond yield 0.92%
30 year fixed rate mortgage 2.78%

Stocks are flattish as we end out 2020. Bonds and MBS are flat as well.

Pending Home Sales fell 2.6% in November, according to NAR. Year-over-year contract signings were up.

“The latest monthly decline is largely due to the shortage of inventory and fast-rising home prices,” said Lawrence Yun, NAR’s chief economist. “It is important to keep in mind that the current sales and prices are far stronger than a year ago.”

“The market is incredibly swift this winter with the listed homes going under contract on average at less than a month due to a backlog of buyers wanting to take advantage of record-low mortgage rates,” Yun said.

For 2021, NAR predicts existing home sales will rise 10% and new home sales will rise 20%. The mortgage rate will rise slightly from 2.7% to 3%.

Initial Jobless Claims fell to 787k last week.

Other than that, have a Happy New Year and see you on the other side.

Author: Brent Nyitray

In the physical sciences, knowledge is cumulative. In the financial markets, it is cyclical

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