According to the National Association of REALTORS®, pending home sales decreased for the sixth consecutive month in November. All four U.S. regions experienced month-over-month and year-over-year declines in transactions. The Pending Home Sales Index (PHSI), which predicts future home sales based on contract signings, dropped 4.0% to 73.9 in November and 37.8% year-over-year. NAR Chief Economist Lawrence Yun stated that rising interest rates greatly impacted contract signings and that falling home sales and construction have negatively affected broader economic activity. He also noted that the Midwest region, with more affordable home prices, has performed better than the West region, which has seen the largest decline in activity. Yun predicts that as mortgage rates decrease in December, home-buying activity will rebound and help economic growth.
Original Source: NAR