Will The Mortgage Rate Spike Kill Pending Home Sales?

houseforsale tbi

Good news! The Pending Home Sales number that just came out indicated a 6.7% increase in April, roundly beating expectations.

But Pending Home Sales aren’t the same as sales closed, and more than ever the pending number may be in doubt. That’s because recent weeks have seen big disruptions in the mortgage market. Loans without locked down rates may be torn up, as mortgage salesman scramble to reprice and finish the deals that are closed.

So compared to the .5% that was forecast, this was great. But be cautious on this one.

That being said, stocks are up! The bears keep on getting pummelled.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.