December Sees 8.3% Rise in Pending Home Sales.

The National Association of Realtors anticipates a 13% increase in existing home sales by 2024.  

Highlights

• Pending Home Sales surpassed analyst forecasts, driven by declining mortgage rates.
• There are strong forecasts for growth in existing home sales in both 2024 and 2025.
• The National Association of Realtors anticipates that the 30-year fixed mortgage rate will hover between 6% and 7% for the majority of 2024.  

On January 26, the National Association of Realtors published their report on Pending Home Sales for December. The report revealed an 8.3% increase in Pending Home Sales on a monthly basis, contrasting the analysts' consensus of +1.5%.

Looking at the yearly comparison, Pending Home Sales saw a 1.3% increase, contrary to the expected 3.4% drop forecasted by analysts.

The National Association of Realtors predicts a 13% surge in existing home sales in 2024 and a 15.8% rise in 2025. Additionally, they anticipate a 1.4% increase in the annual median home price in 2024, followed by a 2.6% increase in 2025.

These projections suggest that the Federal Reserve will make four interest rate cuts, while the 30-year fixed mortgage rate will likely range between 6% and 7% for most of 2024.

The National Association of Realtors remarked, "The housing market is starting the year on a positive note, with consumers benefiting from declining mortgage rates and steady home prices."

The U.S. Dollar Index has begun to recover in response to the better-than-expected Pending Home Sales report, currently aiming to establish a position above the 103.40 level.

Gold is continuing its efforts to decrease below the $2015 level. Treasury yields are rising, which is unfavorable for the gold market.

The S&P 500 is largely stable as traders approach the weekend cautiously. At present, the S&P 500 is confined within a narrow 4890 – 4900 range.