Rising home prices during the spring sales season pushed the share of equity rich homes higher, according to new data from ATTOM Data Solutions. ATTOM’s most recent U.S. Home Equity & Underwater Report found 49.2 percent of mortgaged residential properties were considered equity rich, meaning the combined amount of loan balances on those properties was less than half their estimated market value. In short, spring was good for homeowners. Rob Barber, ATTOM’s CEO, says homeowner wealth turned for the better. “Homeowner wealth took a notable turn for the better during the second quarter as equity levels piggybacked on some of the biggest home-price spikes we’ve seen in recent years,” Barber said. “After a period where equity seemed stagnant or even declining, this brought another boost of good news for homeowners from the enduring housing market boom.” (source)

When a contract to buy a house is signed, that home’s sale is considered pending until the deal is closed weeks later. That makes contract signings a fairly reliable indicator of future home sales, since most signed offers lead to closed sales. The National Association of Realtors tracks pending home sales for this reason. Its Pending Home Sales Index is released monthly and is considered a good predictor of existing-home sales numbers. In June, the index moved 4.8 percent higher, with improvement seen in each of the country’s four regions. Lawrence Yun, NAR’s chief economist, says the growing supply of available homes is behind the increase. “The rise in housing inventory is beginning to lead to more contract signings,” Yun said. “Multiple offers are less intense, and buyers are in a more favorable position.” (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were relatively unchanged last week after hitting the lowest level since February the week before. Rates were flat week-over-week, with little movement for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Mike Fratantoni, MBA’s senior vice president and chief economist, says flat rates weren’t enough to push demand higher. “Last week, VA refi application volume dropped sharply, which drove the aggregate result,” Fratantoni said. “Borrowers may be waiting for signs that mortgage rates will drift lower as the Federal Reserve begins to cut short-term rates.” Demand for loans to buy homes was down 2 percent from one week earlier and is now 14 percent lower than last year at the same time. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)