Home-sales gauge slips but remains solid
By CHRISTOPHER S. RUGABER Associated Press on Aug 29, 2013, at 2:32 AM Updated on 8/29/13 at 4:11 AM
Real Estate
U.S. homebuilders' confidence in the housing market held this month at its highest level in nearly eight years. But builders are starting to worry that sales may slow if mortgage rates continue to rise.
New home construction in the Tulsa region from January to August is outpacing last year's numbers, a continuation of the upward tick that started in 2012 following a six-year slide.
WASHINGTON - Fewer Americans signed contracts to buy U.S. homes in July, but the level stayed close to a 6 1/2-year high. The modest decline suggests higher mortgage rates have yet to sharply slow sales.
The National Association of Realtors says its seasonally adjusted index for pending home sales declined 1.3 percent to 109.5. That's close to May's reading of 111.3, which was the highest since December 2006.
The small decline suggests sales of previously owned homes should remain healthy in the coming months. There is generally a one- to two-month lag between a signed contract and a completed sale.
Final sales jumped to an annual pace of 5.4 million in July, the highest in 3 1/2 years, the Realtors said last week. That's consistent with a healthy housing market.
Higher mortgage rates appeared to have had a bigger impact on new-home sales, which plummeted last month. That raised fears that rate increases were restraining the housing recovery.
But many economists note that home prices and mortgage rates remain low by historical standards. Consistent job gains and rising consumer confidence may also support sales in the coming months.
The average rate on a 30-year mortgage reached 4.58 percent last week.
Original Print Headline: Pending home sales slip, remain strong
Real Estate
U.S. homebuilders' confidence in the housing market held this month at its highest level in nearly eight years. But builders are starting to worry that sales may slow if mortgage rates continue to rise.
New home construction in the Tulsa region from January to August is outpacing last year's numbers, a continuation of the upward tick that started in 2012 following a six-year slide.
