Market Update: Rates Unchanged; Case-Shiller Home Price Index and Pending Home Sales Coming Up This Week

Blog posted On November 28, 2022

During the shortened holiday week, mortgage rates remained relatively unchanged. This marks the second consecutive drama-free week for the bond market and mortgage rates – a trend not seen in months. As stated by Matthew Graham, COO of Mortgage News Daily, “mortgage rates have been hovering around the best levels since late September for two straight weeks now.” As we move into December, it’s possible that rates could have slightly more volatility, but the largest changes are likely to take place closer to the next Federal Open market Committee (FOMC) meeting on December 13-14.

Upcoming economic reports that could impact the bond market (and consequently mortgage rates) this week: job reports, pending home sales, and PCE inflation. The Case-Shiller home price index is also scheduled for release this week.

The S&P Case-Shiller home price index tracks changes in the value of homes involved in two or more sales transactions across 20 major metropolitan areas throughout the country.  Though the data lags by a month, it is still used to gauge home price appreciation trends. In August, the Case-Shiller home price index fell 1.3% month-over-month. Annually, home prices appreciated 13.1%, a smaller increase than the month before. Experts predict that prices will continue to decelerate in September’s data, increasing just 10.8% annually.

The pending home sales index tracks changes in the number of homes that are under contract but not yet closed. In September, pending sales fell 10.2% month-over-month. When discussing the drop in sales, National Association of REALTORS® (NAR) Chief Economist Lawrence Yun noted persistent inflation as a main contributor to the decline.

As the year winds down and we begin to prepare for 2023, it’s often a good idea to take a step back and get a general assessment of your overall finances. What are your goals for next year? What do you think you need to accomplish financially in order to get there? If you'd like to talk about your plans for next year, let us know.

Sources: Bloomberg, Mortgage News Daily, Mortgage News Daily