Existing home sales rise by over 14%

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1. Existing home sales rise by over 14%

Existing home sales in the US rose 14.5% month-over-month in February to a seasonally adjusted annual rate of 4.58 million homes, according to data from the National Association of Realtors (NAR).

Why it matters: This is the largest monthly percentage increase recorded since the 22.4% monthly gain reported in July 2020.

Buyers seized on lower mortgage rates and stagnant prices to buy homes, breathing new life into a U.S. residential housing market that has seen steady declines for the past year.

“Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines,” Lawrence Yun, NAR’s chief economist. “Moreover, we’re seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs.”

All four regions in the US recorded a monthly increase in existing home sales;

• The West posted the largest jump of 19.4% to a sales pace of 860,000 homes.

• The South posted the second-highest monthly increase at 15.9%,

• The Midwest at 13.5% and…

• The Northeast at 4.0%.

The number of existing homes on the market remained unchanged at 980,000, equivalent to 2.6 months of supply at the current sales pace. Despite the increase in sales, the low level of inventory remains an issue.

2. Rates rise ahead of key fed announcement

The banking sector's recent fears led to a decline in mortgage rates over the past two weeks. As these concerns have eased (slightly), the market reaction has reversed, causing an increase in rates.

Although rates have risen, they have not yet returned to the levels seen before the banking drama began. However, if banking fears continue to subside, rates may have more room to rise.

The Fed's announcement today, in which they will likely raise rates by 0.25%, is also a key factor for rate momentum. Fed Chair Powell's post-announcement press conference will provide further insight into the rate environment.

3. Black Knight’s Scout approved to support Fannie Mae's new valuation option

Lenders, appraisal management companies, and property data collection firms can now utilize Black Knight's Scout mobile property inspection app for streamlined data collection.

The cloud-based app allows users to gather detailed interior and exterior property data with mobile devices, improving efficiency, cost savings, and data transparency.

“By using Scout, lenders experience significant efficiencies and cost savings as well as greater data transparency, minimize the potential for bias and realize faster origination turn times,” Ben Graboske, President of Black Knight data & analytics.

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4. More Nuggets

💼 Zillow data suggests that the housing correction is losing momentum, as the number of US housing markets experiencing month-over-month home price drops decreased from 303 to 133 between September 2022 and February 2023, with small and midsize markets in the Midwest, South, and Northeast transitioning from correction to growth, while many Western markets continue to post home price declines. (Fortune)

📄 Guild Mortgage has announced the pending retirement of CEO Mary Ann McGarry, effective June 30, after almost 40 years with the company, with Guild President Terry Schmidt set to succeed her as CEO, effective July 1. (NMP)

☕️ I fun thing: How to make olive oil coffee — Starbucks’ latest thing — at home.

☀️ Thanks for reading. See you on Friday!

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