WASHINGTON–The housing market has cooled slightly in one analysis, while its being called “strongly positive” in another.
The National Association of Realtors reported its pending home sales index, based on contracts signed during May, declined 0.2% below where it was one year earlier, the first year-over-year decline in almost two years, according to the NAR.
The NAR said it found contracts fell in all of the nation's four regions in May compared with April. Pending home sales for April were also revised downward to a 3.9% increase from 5.1%.
In its analysis, the NAR said both March and April, which are critical selling months in the housing market, had readings that came in stronger than expected and the fall in May could partly be attributed to a lack of inventory, the NAR said.
Meanwhile, Freddie Mac reported that of the 50 states and the District of Columbia 49 posted positive year-over-year home purchase application changes. North Dakota and Wyoming, two states heavily reliant on the energy sector, were the only states with year-over-year declines. Out of the 100 metro areas Freddie tracks, 99 posted positive year-over-year gains, with Tulsa, Okla. – also with deep ties to the energy sector – posting no change year-over-year, Freddie Mac said.
"The strong positive momentum in home purchase applications is a good sign for a housing market likely to post the best year in home sales since 2006,” said Freddie Mac Deputy Chief Economist Len Kiefer, in a statement. “If global factors like the Brexit put significant downward pressure on long-term mortgage rates, the U.S. housing market could benefit from increased affordability, helping to partially offset the impact of house prices, which are rising around six percentage points year over year nationally."