Home Purchase Contracts Stumble in February
Home Purchase Contracts Stumble in February
Home Purchase Contracts Stumble in February
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March 27, 2012 (Chris Moore)

Contract signings for home purchases stumbled in February, falling 0.5 percent from January, as the Pending Home Sales Index (PHSI) declined from 97.0 to 96.5 according to the National Association of Realtors® (NAR).

The PHSI still remained a healthy 9.2 percent above February 2011’s level of 88.4 leading to continued optimism about the prospects for 2012.

Lawrence Yun, chief economist of NAR, stated, “The spring home buying season looks bright because of an elevated level of contract offers so far this year. If activity is sustained near present levels, existing-home sales will see their best performance in five years. Based on all of the factors in the current market, that’s what we’re expecting with sales rising 7 to 10 percent in 2012.”

But cancelled purchase contracts continue to be a cause for concern. For the fifth consecutive month, nearly one in three NAR members reported at least one contract cancellation in February.

“Contract failures remain an issue, reported by one-third of Realtors® over the past few months, but home buyers are not giving up. Housing affordability conditions are too good to pass up. Our hope is lending conditions will gradually improve with sustained increases in closed existing-home sales,” Yun said back in January.

Most contract failures are caused by declined mortgage applications or low appraisals but can also be caused by home inspection problems and employment losses. Some sales are still completed after the contract delay; while others will go on to make another offer.

Three of the four regions in the Index experienced declines in their monthly level of sales contract activity while the same number of regions posted higher levels of activity than the previous year.

In the South, the index fell by 3.0 percent to 105.8, followed by the West, which saw a decline of 2.6 percent to 99.3 and in the Northeast the index fell 0.6 percent to 77.7. The Midwest was the only bright spot with a gain of 6.5 percent to 93.8

Compared to February 2011, the Midwest was 19.0 percent higher, the Northeast gained 18.4 percent and the South was 7.8 percent higher while the West posted the only annual decline of 1.8 percent.

The PHSI is a forward looking indicator which generally indicates closings one to two months in the future.

Tags: pending home sales, existing home sales, contract signings, contract cancellations

Source:
NAR

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Estimate your monthly mortgage payment
Auto Loan
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Determine how much car you can afford before buying
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15 Year vs 30 Year
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Compare 15 year and 30 year mortgage loans
Todays Mortgage
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March 27, 2012 (Chris Moore)

Contract signings for home purchases stumbled in February, falling 0.5 percent from January, as the Pending Home Sales Index (PHSI) declined from 97.0 to 96.5 according to the National Association of Realtors® (NAR).

The PHSI still remained a healthy 9.2 percent above February 2011’s level of 88.4 leading to continued optimism about the prospects for 2012.

Lawrence Yun, chief economist of NAR, stated, “The spring home buying season looks bright because of an elevated level of contract offers so far this year. If activity is sustained near present levels, existing-home sales will see their best performance in five years. Based on all of the factors in the current market, that’s what we’re expecting with sales rising 7 to 10 percent in 2012.”

But cancelled purchase contracts continue to be a cause for concern. For the fifth consecutive month, nearly one in three NAR members reported at least one contract cancellation in February.

“Contract failures remain an issue, reported by one-third of Realtors® over the past few months, but home buyers are not giving up. Housing affordability conditions are too good to pass up. Our hope is lending conditions will gradually improve with sustained increases in closed existing-home sales,” Yun said back in January.

Most contract failures are caused by declined mortgage applications or low appraisals but can also be caused by home inspection problems and employment losses. Some sales are still completed after the contract delay; while others will go on to make another offer.

Three of the four regions in the Index experienced declines in their monthly level of sales contract activity while the same number of regions posted higher levels of activity than the previous year.

In the South, the index fell by 3.0 percent to 105.8, followed by the West, which saw a decline of 2.6 percent to 99.3 and in the Northeast the index fell 0.6 percent to 77.7. The Midwest was the only bright spot with a gain of 6.5 percent to 93.8

Compared to February 2011, the Midwest was 19.0 percent higher, the Northeast gained 18.4 percent and the South was 7.8 percent higher while the West posted the only annual decline of 1.8 percent.

The PHSI is a forward looking indicator which generally indicates closings one to two months in the future.

Tags: pending home sales, existing home sales, contract signings, contract cancellations

Source:
NAR

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
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Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
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March 27, 2012 (Chris Moore)

Contract signings for home purchases stumbled in February, falling 0.5 percent from January, as the Pending Home Sales Index (PHSI) declined from 97.0 to 96.5 according to the National Association of Realtors® (NAR).

The PHSI still remained a healthy 9.2 percent above February 2011’s level of 88.4 leading to continued optimism about the prospects for 2012.

Lawrence Yun, chief economist of NAR, stated, “The spring home buying season looks bright because of an elevated level of contract offers so far this year. If activity is sustained near present levels, existing-home sales will see their best performance in five years. Based on all of the factors in the current market, that’s what we’re expecting with sales rising 7 to 10 percent in 2012.”

But cancelled purchase contracts continue to be a cause for concern. For the fifth consecutive month, nearly one in three NAR members reported at least one contract cancellation in February.

“Contract failures remain an issue, reported by one-third of Realtors® over the past few months, but home buyers are not giving up. Housing affordability conditions are too good to pass up. Our hope is lending conditions will gradually improve with sustained increases in closed existing-home sales,” Yun said back in January.

Most contract failures are caused by declined mortgage applications or low appraisals but can also be caused by home inspection problems and employment losses. Some sales are still completed after the contract delay; while others will go on to make another offer.

Three of the four regions in the Index experienced declines in their monthly level of sales contract activity while the same number of regions posted higher levels of activity than the previous year.

In the South, the index fell by 3.0 percent to 105.8, followed by the West, which saw a decline of 2.6 percent to 99.3 and in the Northeast the index fell 0.6 percent to 77.7. The Midwest was the only bright spot with a gain of 6.5 percent to 93.8

Compared to February 2011, the Midwest was 19.0 percent higher, the Northeast gained 18.4 percent and the South was 7.8 percent higher while the West posted the only annual decline of 1.8 percent.

The PHSI is a forward looking indicator which generally indicates closings one to two months in the future.

Tags: pending home sales, existing home sales, contract signings, contract cancellations

Source:
NAR

HOW LOANRATENETWORK
LOAN CENTER WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.