Shelter Six:  NAR Upgrades Outlook for Home Sales and Prices

The financial markets, including mortgage rates, have not had much reaction to the rioting going on within U.S. cities, and have opened flat on Monday.

Due to the surprising resiliency of the housing market in the midst of the pandemic, NAR has upgraded the outlook for both home sales and prices for the rest of this year.

Home Sales are now projected to decline only 11% in 2020 (had been 15%) and the Median Home Price is now projected to increase 4% (had been 0%).

April New Home Sales shocked experts and increased slightly from March, after forecasts called for a drop of as much as 20%.  April Pending Home Sales, however, slumped more than expected and were down 22% from March.

A Flash Survey from NAR indicates that 34% of Realtors have successfully completed nearly all aspects of transactions while adhering to social distancing procedures.

Only 7K new mortgages went into forbearance last week.  Mortgage in forbearance now represent 9% of all mortgages, according to Black Knight as of May 26.

Rate Update

The Conforming 30-year fixed-rate hit the lowest level since Freddie Mac began tracking it in 1971 and remains in the low 3’s.  Until things with the pandemic get measurably better, the Federal Reserve has said it will keep buying bonds, which should keep rates very low.

This Week

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

June 1, 2020 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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