February Pending Homes Sales: Great News Or Awful News? Inflation Down
The total number of homes that went into contract in February increased by 0.8% in February compared to January.
Here are two reactions:
Mortgage and Real Estate Industry: “Holy Smokes – that is amazing, great news, and concrete proof that the housing market remains incredibly strong!”
Diana Olick of CNBC: “We’re all going to die!”
OK… Diana actually said “pending homes sales eeked out a tiny 8/10 of 1% gain…” trying to make things look as bleak as possible.
And – I am putting things in perspective AGAIN because so many potential buyers see the negative spin in the media and get discouraged.
So, this blog is one more piece of good news to share with potential buyers.
THIS IS WHY THE FEBRUARY PENDING HOMES SALES NUMBER WAS GREAT NEWS!
- Interest Rates ROSE 1% in February! As we all have been watching over the last year, buyers are extremely sensitive to interest rates. So, if home sales numbers are rising in the face of rates rising that quickly, it is actually a very strong sign that the housing market remains surprisingly robust.
- January Pending Home Sales Were Up 8%! Seeing pending home sales rise again in February after such an unexpectedly strong January was a huge and very welcome surprise for all of us in both the mortgage and real estate industries.
- Analysts Expected Pending Sales to FALL by 3% In February! Hence, a positive number was a slap in the face for all of the doom-and-gloomers.
- Third Month In a Row of Gains. Pending home sales have climbed for three straight months, despite continued predictions of falling numbers.
INFLATION CAME IN SLIGHTLY BETTER THAN EXPECTED
The Personal Consumption Expenditure (PCE) report came in slightly better than expected today. This too is good news, and once lower “shelter costs” (mostly rent) work their way into the PCE, we will seen even lower reports. So – things keep heading in the right direction.
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