Existing Home Sales is set to report May ’18 this coming Wednesday, June 20th.
After a weak April ’18 report, experiencing a 2.5% (MoM) decline in home sales during the month of March, realtors are looking for an uptick in home sales in the May report. The average 30-year fixed mortgage rate hit a 7 year high reaching 4.66%, according to Freddie Mac, making it tougher for consumers to invest in a new home. The April ’18 report was down 1.9% (YoY) in comparison to April ’17, signaling the compounding effects of higher mortgage rates and dwindling supply of houses on the market.
Despite the highest 30-year fixed mortgage rates in 7 years, the housing market has been fairly healthy, fueled by a growing economy with average household income growing. The Estimize Community expects Home Sales to remain fairly stagnant, predicting 0.46% growth MoM (5,485,000 Home Sales). Realtors are hoping for a stronger report as falling unemployment and higher demand for single family homes has been undercut by rising mortgage rates.