(NAR) The sales of pending homes in the US fell by a monthly 3.9% in April from March, marking its sixth straight month of decline.
Contract signings fell in all the regions except the Midwest, which saw a month-over-month increase. On a year-over-year, contract signings fell in all the four regions.
NAR’s chief economist Lawrence Yun commented on the decline in pending home sales, saying it reflects the pricier borrowing rates. Yun expects existing home sales to fall by 9% in 2022 while the increase in house prices will moderate to 5% by the end of the year.
Yun says that home sales could stabilize in the next months if mortgage rates steady at the current 5.3% level, while the economy continues to add jobs. He points out that home prices are in no imminent sight of falling as shortages still remain.
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