mamarama
The Pending Home Sales Index fell 4.9% to 74.3 in January, falling short of the 1.4% increase expected and easing from the 5.7% climb in December (revised from +8.3%). From a year earlier, pending transactions decreased 8.8%.
“Consumers are showing extra sensitivity to changes in mortgage rates in the current cycle, and that’s impacting home sales,” said Lawrence Yun, chief economist at the National Association of Realtors.
By region, pending home sales increased in the Northeast and West, but declined in the Midwest and South.
“Southern states and those in the Rocky Mountain time zone experienced faster job growth compared to the rest of the country,” added Yun. “As a result, long-term housing demand is increasing more significantly in these regions. However, the timing and number of purchases will largely depend on the prevailing mortgage rates and inventory availability.”