Uncertainty for Lenders, Future Home Sales Clouds a Strong February Finish

February pending home sales rose 2.4 percent from January, and they were up 9.4 percent from the same time last year, continuing January’s strong preview to the spring season. But COVID-19 has shifted the path of the housing market as it has with almost every other U.S. industry’s trajectory. Though February’s pending sales were at the highest level in three years, experts believe that a sizable portion of those deals fell through, and rising delinquencies in auto and credit payment in addition to the large number of unemployment applications may spell trouble for the previously healthy mortgage delinquency rate. 

Pending home sales rose to their highest level in three years in February — but offer little immediate hope. Mortgage lenders are facing a daunting new reality. And credit card and auto loan delinquencies are creeping up.

Pending sales offer more confirmation that the pre-crisis housing market was strong

Pending home sales – a measure of signed contracts, but not-yet-closed deals – unexpectedly rose 2.4% in February from January, and were up 9.4% from February 2019.

February’s numbers were the highest level in three years.

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