The National Association of Realtors® (NAR) reported on Monday (6-27-22). their Pending Homes Sales Index (PHSI), which is based on signed real estate contracts, not actual closings, for existing single-family homes, condominiums, and co-ops, increased 0.7%, in May 2022 from April, to a reading of 99.9. The first month-over-month increase in the past 6-months. Year-over-year contract signings have also declined -13.6%. An index of 100 is equal to the level of contract activity in 2001.
The NAR notes that the variation in home prices and affordability contributed to the regional differences in pending sales activity in May. In May two out of the four regions posted increases. The Northeast Region led the PHSI higher with a 15.4% uptick. While the Southern Region posted a 0.2% increase. Posting declines in May were the Midwest Region -1.7%, and the Western Region at -5.0%.
According to NAR, at the median single-family home price and with a 10% down payment, the monthly mortgage payment has increased by about $800 since the beginning of the year as mortgage rates have climbed by 2.5% points since January.
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