Blog posted On March 30, 2020
Mortgage rates have experienced some volatility in recent weeks, as the global economy copes with coronavirus concerns. Overall, average mortgage rates are historically low. In housing news, this week, the pending home sales index, the S&P CoreLogic Case-Shiller home price index, and US construction spending are all scheduled for release.
The pending home sales index tracks changes in the number of homes that are under contract but not yet closed. Typically, it takes four to six weeks for a contract to close. Pending home sales can be used to predict the trend of future reports like the new home sales report or existing home sales report. In January, pending home sales surged, up 5.2% month-over-month and 5.7% year-over-year.
The Case-Shiller home price index tracks changes in the value of homes involved in two or more sales transactions across twenty major metropolitan areas throughout the country. In December, the 20-city index appreciated 0.4% month-over-month and 2.9% year-over-year. Phoenix, AZ, Charlotte, NC, and Tampa, FL led the index in price gains.
US construction spending tracks total spending on private and public construction projects. In January, construction spending increased 1.8% month-over-month to a level of $1.369 trillion. Spending on residential projects jumped 2% month-over-month driven by lower mortgage rates.
Even with recent increases in mortgage rates, average mortgage rates overall are historically low. If you are interested in making any real estate moves, we accept applications online, over the phone, and through our mobile apps. You can get preapproved for a new purchase or refinance loan from the comfort of your home. Let us know if you have any questions.