Existing Home Sales Rose 6.5% in July; Current Supply at 5.1-Month Rate
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Homebuilders are active Wednesday following new existing home data showing stronger-than-expected results, even as mortgage rates continue to climb.
Data from the National Association of Realtors (NAR) has existing-home sales rising 6.5 percent to a seasonally adjusted annual rate of 5.39 million in July from a downwardly revised 5.06 million in June, and are 17.2 percent above the 4.60 million-unit pace in July 2012; sales have remained above year-ago levels for 25 months. The Street was modeling a seasonally-adjusted rate of 5.1 million units.
Key factors that should continue to drive home sales include job growth and loosening of mortgage underwriting policies, Yun noted.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.37 percent in July from 4.07 percent in June, and is the highest since July 2011 when it was 4.55 percent; the rate was 3.55 percent in July 2012.
Total housing inventory at the end of July rose 5.6 percent to 2.28 million existing homes, a 5.1 month supply.
Up today include names like Lennar (NYSE: LEN), Beazer Homes (NYSE: BZH), PulteGroup (NYSE: PHM), and KB Home (NYSE: KBH). The SPDR S&P Homebuilders (NYSE: XHB) ETF is also up on the session.
Data from the National Association of Realtors (NAR) has existing-home sales rising 6.5 percent to a seasonally adjusted annual rate of 5.39 million in July from a downwardly revised 5.06 million in June, and are 17.2 percent above the 4.60 million-unit pace in July 2012; sales have remained above year-ago levels for 25 months. The Street was modeling a seasonally-adjusted rate of 5.1 million units.
Mortgage interest rates are at the highest level in two years, pushing some buyers off the sidelines,commented NAR chief economist Lawrence Yun.
The initial rise in interest rates provided strong incentive for closing deals. However, further rate increases will diminish the pool of eligible buyers.
Key factors that should continue to drive home sales include job growth and loosening of mortgage underwriting policies, Yun noted.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.37 percent in July from 4.07 percent in June, and is the highest since July 2011 when it was 4.55 percent; the rate was 3.55 percent in July 2012.
Total housing inventory at the end of July rose 5.6 percent to 2.28 million existing homes, a 5.1 month supply.
Up today include names like Lennar (NYSE: LEN), Beazer Homes (NYSE: BZH), PulteGroup (NYSE: PHM), and KB Home (NYSE: KBH). The SPDR S&P Homebuilders (NYSE: XHB) ETF is also up on the session.
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