Pending Home Sales Bounce Back In December

According to a National Association of Realtors news release on January 30, 2017---- Pending home sales picked up in December as solid increases in the South and West offset weakening activity in the Northeast and Midwest. The pending Home Sales Index, *a forward-looking indicator based on contract signings, increased 1.6 percent to 109.0 in December from 107.3 in November. With last month's uptick in activity, the index is now 0.3 percent above last December (108.7). Lawrence Yun, NAR chief economist, says contract activity was mixed throughout the country in December but ultimately ended on a high note to close out 2016. "Pending sales rebounded last month as enough buyers fended off rising mortgage rates and alarmingly low inventory levels to sign a contract," he said. "The main storyline in the early months of 2017 will be if supply can meaningfully increase to keep price growth at a moderate enough level for households to absorb higher borrowing costs. Sales will struggle to build on last year's strong pace if inventory conditions don't improve." To learn more about pending home sales bouncing back in December click on the picture below to read the National Association of Realtors release.