Pending home sales declined for the second straight month in December, with all major regions recording a contraction during the period.
Source: National Association of Realtors
ITB is up 1.03%, while NAIL is up 2.13%.
Contract signings for the month of December stood at 117.7, down 3.8% from the previous month and 6.9% lower than the same month in 2020. The latest level remained higher than the 100 threshold that separates expansion from contraction.
NAR Chief Economist Lawrence Yun attributed the decline to lower supply, leaving consumers limited options. He also cited higher mortgage rates which will likely push aside marginal buyers.
Existing home sales are predicted to fall by 2.8% this year, with home prices seen to increase by 5.1% amid the ongoing housing shortage despite the expected boost in production by builders.
Yun expects the 30-year fixed mortgage to grow to 3.9% by the last quarter of the year.