Pending home sales miss expectations January-2015

Despite near record low mortgage rates, January pending home increased below expectations.  The modest growth, just under 2%, is the 5 month in a row that the report came in below expectations.  Mortgage interest rates were supposed to help the purchase market however there is little evidence that happened.

The consistently and somewhat overly optimistic NAR economist Lawrence Yun issued the following statement:

“For the most part buyers in January were able to overcome tight supply to sign contracts at a pace that highlights the underlying demand that exists in today’s market. “Contract activity is convincingly up compared to a year ago despite comparable inventory levels,” he said. “The difference this year is the positive factors supporting stronger sales, such as slightly improving credit conditions, more jobs and slower price growth.”