(NAR) Pending home sales in the US plunged by 5.7% in January from the previous month, with the index hitting 109.5. Only the West posted a rise in contract signings on a monthly basis.
On a year over year basis, the contract signings declined by 9.5%, with all the four regions posting lower transactions from the prior year.
NAR’s chief economist Lawrence Yun says inventory remains at all-time low, making the buyers unable to find a home. He also reads headwinds from high home prices amid rising interest rates.
Yun says economic conditions may be volatile going forward, with the projected rate hike in March and the Ukrainian crisis imposing further burdens on house activity. He says investors may rush to safer Treasury bonds in the wake of higher rates.
SPY is up +0.80%, DXY is down -0.27%.
