Pending home sales continued to rebound across the country in June (for now)

Source: MarketWatch

Once Americans get used to sub-3% rates, they may not continue to drive sales volumes

The index of pending home sales rose 16.6% in June as compared with May, the National Association of Realtors reported Wednesday.

The increase comes after pending home sales experienced the largest monthly rise on record last month, the trade group said.

Compared with a year ago, contract signings were up 6.3%, a sign of how sharply the market has rebounded from its coronavirus-related low.

“It is quite surprising and remarkable that, in the midst of a global pandemic, contract activity for home purchases is higher compared to one year ago,” Lawrence Yun, the National Association of Realtors’ chief economist, said in the report. “Consumers are taking advantage of record-low mortgage rates resulting from the Federal Reserve’s maximum liquidity monetary policy.”

Read more: https://www.marketwatch.com/story/pending-home-sales-continued-to-rebound-across-the-country-in-june-for-now-2020-07-29