Pending home sales in the United States fell for the third straight month in January to hit the lowest level in nine months, with the inventory at an all-time low.
Source: National Association of Realtors
XHB is up 0.12%, while ITB is up 0.47%.
The Pending Home Sales Index stood at 109.5 in January, down by 5.7% from the previous month and 9.5% from the previous year. This is the weakest level recorded since April 2021’s 109.3.
The most contract signings were recorded in the southern region where the level stood at 134.6, followed by the midwest with 104.4, the west with 95.2, and the northeast with 84.3.
NAR Chief Economist Lawrence Yun said buyers are facing difficulties to secure a home due as inventory has sank to an all-time low, along with higher mortgage costs and increasing interest rates.
The market is expected to face volatility in the coming months, with a possibility that buyers would move more into US Treasury bonds along with the end of the Federal Reserve’s bond-buying program.
The latest figures remained above the 100 level threshold which separates expansion from contraction.