Pending Home Sales fell 4.9% from December to January per the National Association of REALTORS® (NAR), coming in below expectations. Sales were also 8.8% below the level reported in January 2023. Pending Home Sales measure signed contracts on existing homes, making them an important forward-looking indicator for closings as measured by Existing Home Sales.
What’s the bottom line? “The job market is solid, and the country’s total wealth reached a record high due to stock market and home price gains,” said NAR Chief Economist Lawrence Yun. “This combination of economic conditions is favorable for home buying. However, consumers are showing extra sensitivity to changes in mortgage rates in the current cycle, and that’s impacting home sales.”