Pending Home Sales Rebound as a Result of Lower Mortgage Rates

For the second consecutive month, contract signings increased in January, registering their largest month-to-month gain since June 2020. This jump in pending home sales in January indicates consumers are wading back into the market as rates settle in the 6% range. According to the National Association of Realtors, US homebuyers rushed to take advantage of falling mortgage rates in January, with contract signings increasing by 8.1%. The rate of new home sales also increased, with sales of newly built single-family homes rising 7.2% last month, the Commerce Department reported. All four US regions posted monthly gains in contract signings, with the West experiencing the largest increase due to lower home prices, while the South benefited from stronger job growth. The NAR predicts that the national median home price will fall 1.6% to $380,100 in 2022 before rising again in 2023.

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