After suffering a major drop in November 2015, existing-home sales turned the tables with the largest monthly increase ever recorded in December. Many economists in the mortgage industry felt November's slump was just a temporary fallback for a huge comeback from the backlog of mortgage purchases during the implementation of TRID.
The National Association of Realtors reported Friday that existing-home sales rose 14 point 7 percent to a seasonally adjusted annual rate of 5 point 46 million in December, up from 4 point 46 million in November. Year-over-year, existing-home sales are up 7 point 7 percent, and December's jump will mark the largest increase ever.
A Zillow report found that rents will flatten in 2016, but will still be unaffordable in most markets, presenting yet another challenge for the aspiring homebuyer on top of rising rates, tightening credit, and flat incomes. According to Zillow's Rent Forecast, rent appreciation is expected to flatten over the next 12 months and will slow to an annual rate of 1 point 1 percent by December 2016. Nationally, the index is forecast to be 1 thousand 396 dollars by the end of the year, compared to 1 thousand 381 dollars in December 2015.