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US pending home sales fell unexpectedly in February for a fourth consecutive month as limited inventory continued to limit a real estate market that’s now facing a huge challenge.
- The National Association of Realtors index of pending home sales plunged 4.1% from a month earlier to a nearly two-year low of 104.9.
- Lawrence Yun, chief economist NAR, stated that pending transactions fell in February due to the low number of homes for sale.
- Yun further stated that the surge in home prices alongside rising mortgage rates could easily translate to $200 to $300 in mortgage payments per month, which is a major hurdle for many families already on tight budgets.
- Asking prices for homes remain high. That’s going to make homes less affordable, considering the average rate on a 30-year fixed mortgage remains at a three-year record-high of 4.5%.
Higher mortgage rates and consistent price increases have driven up mortgage payments by 28% from February of 2021.
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Source: National Association of Realtors
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