US pending home sales fell in November
WASHINGTON — Fewer Americans signed contracts to buy homes in November. The decrease likely reflects the drag caused by rising mortgage rates and the shallow inventory of properties on the market.
The National Association of Realtors said Wednesday that its seasonally adjusted pending home sales index fell 2.5 per cent to 107.3, the lowest reading since the start of 2016. Pending sales declined in the Midwest, South and West, while improving in the Northeast.
The slowdown marks a reversal for the housing market, as sales growth has been solid for the past year. Completed sales of existing homes in November climbed their highest pace in nearly a decade, reaching a seasonally adjusted annual rate of 5.61 million, the Realtors said last week. But the pending sales contracts suggest that demand may be weakening now that the costs of purchasing a home have increased.
Pending sales contracts are a barometer of future purchases. A sale is typically completed a month or two after a contract is signed.