Shelter Six:  Pending Home Sales Up

March 30, 2018 by · Leave a Comment 

1. After a disappointing January, Pending Home Sales rebounded nicely in February with contracts signed to purchase previously owned homes increasing 3%.

2. This is an important metric because contracts signed are viewed as a leading indicator of future closings.

3. Millennials, or people roughly between 23 and 37 of age, were the most active generation of homebuyers in 2017, according to NAR.

4. Based on a recent survey, NAR estimated that 36% of all home sales involved Millennials last year, up from 34% the previous year.

5. And here comes Generation Z!  The post-Millennial crop of kids born in 1995 and later are buying houses much earlier than the Millennials.

6. MarketWatch reports that just shy of 100K members of Generation Z have already purchased a home and have a payment record better than Millennials.

Rate Update

It was a relatively quiet holiday-shortened week.  The economic data contained no major surprises and caused little reaction, and mortgage rates finished the week a bit lower.

This Week

The ISM National Manufacturing Index will be released on Monday, the ISM National Services Index on Wednesday, and the Employment Report on Friday.