From NBCUniversal:

Pending home sales in November remained unchanged from October and were 5.2% lower than the previous year, according to the National Association of Realtors. The reading is based on signed contracts and acts as a forward-looking indicator of closed sales and potential homebuyer sentiment.

Mortgage rates played a key role in the report, with rates on the 30-year fixed mortgage reaching over 8% in mid-October, then dropping to 7.5% in the first week of November, and ending the month around 7.25%. Analysts had expected the drop to cause a slight gain in pending sales, but high home prices and tight supply seemed to offset this impact.

Pending sales rose 0.8% in the Northeast, 0.5% in the Midwest, and 4.2% in the West, while they fell 2.3% in the South. Pending sales were lower in all regions in November compared to the same month in 2022.

Mortgage rates are now in the mid-6% range, but the supply of homes for sale remains low. Prices for existing homes continue to rise, leading to challenges for potential buyers.

NAR’s chief economist, Lawrence Yun, believes that with mortgage rates falling further in December, leading to savings of around $300 per month from the recent peak in rates, home sales will show improvement in 2024.



Read more: November pending home sales unchanged, despite lower mortgage rates