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Builders apply the brakes amid canceled contracts

Housing Wire

For the builders, they have a new problem: they had homes under contract and then mortgage rates jumped in the biggest fashion ever recorded in history. If the builders could, they would take some of the past contracts back, but they’re just stuck with these homes. I personally wouldn’t do it.

Contracts 545
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Mortgage applications fall for fourth week

Housing Wire

Record-low inventory is pushing home-price growth at double the rate from a year ago, and even above the 10% growth rates seen in 2005,” Kan said. “The housing market is in desperate need of more inventory to cool price growth and preserve affordability.

Mortgage 459
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Pending home sales crush hopes of forbearance crash bros

Housing Wire

is the highest reading for May since 2005. Contract signings rose in all regions in May compared to the prior month and one year ago. From the National Association of Realtors : “Pending home sales rose 8% in May from the prior month and 13.1% from one year ago. The May 2021 Pending Home Sales Index of 114.7

Realtors 505
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The new home sales recession continues

Housing Wire

can’t have a credit sales boom like we saw from 2002-2005. This means we won’t be working from record-breaking demand of high sales like we did at the peak of 2005. The builders are in a better position to manage their inventory glut than when they were working from a credit boom in 2005 that took new home sales up to 1.4

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Housing starts data lags reality of higher mortgage rates

Housing Wire

As you can see below, the housing demand data from 2002 to 2005 was never apparent in any housing data lines from 2018 to 2022. It takes forever to finish a home, and now the builders are dealing with the reality of borrowers who went into contract with sub-4% rates and are now dealing with 5%+ rates. percent (±7.7

Mortgage 493
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Are new home sales flagging a recession?

Housing Wire

As you can see, sales levels were never elevated like what we saw from 2002-2005. This housing cycle is and will always be based on real demand, versus the credit boom we saw from 2002 to 2005. The new home sales sector is much different — it’s a contract to purchase a home that isn’t built yet. Slow and steady wins the race.

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Pending home sales reach highest May mark in 16 years

Housing Wire

Pending home sales reached its highest mark for the month of May since 2005, up 8% from the previous month of April as low inventory continues driving buyers to snatch up available real estate. ” Contract signings on new homes increased 13.1% ” Contract signings on new homes increased 13.1% year over year. .