Published by FOX Business | February 25, 2022
New contract signings fall again with inventory at an all-time low
Pending home sales fell for the third month in a row in January, amid all-time low inventory and sky-high prices.
The latest data from the National Association of Realtors shows contract signings for home sales dropped 5.7% last month, when the number of available homes on the market hit a record low of 860,000 units.
“With inventory at an all-time low, buyers are still having a difficult time finding a home.”
–NAR chief economist Lawrence Yun.
The Pending Home Sales Index showed a decline in sales across three of the four major regions in the U.S. according to the NAR, with sales in the West actually seeing a boost last month.
Pending home sales dropped by 12.1% in the Northeast in January, 6.3% in the South and 5.9% in the Midwest. The West saw contracts increase by 1.5%. Year over year, total sales fell by 9.5%, with all regions posting declines.
“Given the situation in the market – mortgages, home costs and inventory – it would not be surprising to see a retreat in housing demand,” Yun added.
Mortgage interest rates have been on a steady climb, with the average 30-year fixed-rate product hitting 4.06% this week – nearly a full percentage point higher than where it sat a year ago according to the Mortgage Bankers Association.
The MBA’s latest numbers indicate a 13.1% drop in mortgage applications from a week ago, while the average loan size has hovered around $453,000.
Source: https://www.foxbusiness.com/economy/pending-home-sales-slump
