San Francisco Chronicle/Hearst N/Hearst Newspapers/San Francisco Chronicle via Gett
Pending U.S. home sales in November were identical to October.
New York CNN –
In a miserable year for home sales, sometimes no news is good news.
After a sharp decline in October, pending home sales in the United States remained at a 20-year low in November, according to a report released Thursday.
Meanwhile, the pending home sales index – a forward-looking indicator based on contract signings rather than closings – was down 5.2% from a year earlier, monthly data from the National Association of Realtors showed.
The South was the only region where monthly outstanding transactions fell in November. Pending sales in the Northeast, Midwest and West increased during the month. However, all four regions experienced year-over-year declines in transactions.
“Although falling mortgage rates did not prompt more homebuyers to submit formal contracts in November, it did spark a surge in interest, reflected in a higher number of lockbox openings,” said Lawrence Yun, NAR chief economist.
“As mortgage rates continue to decline in December – resulting in savings of around $300 per month from the recent cyclical interest rate peak – home sales will improve in 2024,” Yun added.
As mortgage rates continue to fall in anticipation of rate cuts by the Federal Reserve starting next year, the housing market should continue to recover.
The average 30-year fixed-rate mortgage was 6.67% in the week ending December 21st. This is a decrease from the previous week. However, it is still higher than a year ago.
At the same time, the housing stock remains limited.
“Buyers have gravitated toward new construction over the past year as the supply of existing homes has remained limited and builders are willing to incentivize purchases with lower rates,” Realtor.com chief economist Danielle Hale said in a statement.
“An increase in existing home listing activity, which led to an increase in total inventory in November, coupled with a decline in mortgage rates [should] “We want to attract buyers to existing homes and improve upcoming sales activity,” Hale added.
Mortgage rates for the week ending December 28 are scheduled to be released on Thursday at noon ET.