Momentum is still building in the housing market. Pending home sales jumped 8.1% in August — far exceeding analyst expectations for around 1% growth. Pending sales, or signed contracts, had cooled during the prior two months, though remained above pre-pandemic levels. Home prices surged over the back half of last year and the first part of this year.
Source: NAR
Mortgage Rates Jump Above 3%
Mortgage rates rose across all loan types this week as the 10-year U.S. Treasury yield reached its highest point since June. Many factors led to this increase, including the Federal Reserve communicating that it will taper its support of the capital markets, the broadening of inflation and emerging energy supply shortages which compound other labor and materials shortages. We expect mortgage rates to continue to rise modestly which will likely have an impact on home prices, causing them to moderate slightly after increasing over the last year.
