18 May 2014
After a disappointing first quarter, home sales are primed for pick up due to lower mortgage rates and slowing price appreciation, according to Scott Anderson, chief economist at the Bank of the West.
The National Association of Realtors pending home sales index rose 3.4% in March, “foreshadowing stronger home sales in April,” the chief economist said in his weekly U.S. Outlook report.
He also noted that the Mortgage Bankers Association’s purchase mortgage application index bottomed out in March and it has been “gradually rising ever since.”
Next week, the Realtors will release their April existing home sales report for April and the Census Bureau will release its new home sales report for April. “We are forecasting improvements on both new and existing home sales,” Anderson says in the May 16 report.