How To Guide For: A Look At The Drop In Pending Home Sales In November
Pending home sales dipped in November to their lowest level in nearly a year as the rapid upswing in mortgage rates and enough inventory dispirited some would-be buyers, according to the National Association of Realtors. Only the Northeast saw monthly and annual pending sales gains last month. The Pending Home Sales Index declined 2.5% to 107.3 in November from 110.00 in October. After last month's decrease in activity, the index is now 9.4% below last November (107.7) and is at its lowest reading since January (105.4). According to Lawrence Yun, NAR chief economist -- "The budget of many prospective buyers last month was dealt an abrupt hit by the quick ascension of rates immediately after the election". "Already faced with climbing home prices and minimal listings in the affordable price range, fewer home shoppers in most of the country were successfully able to sign a contract." Yun states that higher borrowing costs somewhat cloud the outlook for the housing market. This was evident in NAR's most recent HOME survey, which found that confidence among renters about now being a good time to buy has diminished since the beginning of the year. The good news, according to Yun, is that the impact of higher rates will be partly neutralized by stronger wage growth as a result of the 2 million net new job additions expected next year. To get more information about the drop in pending home sales in November click the pictures below to read the articles.