Pending US home sales fell 2.5% in November

Index on under-contract sales dropped to lowest level since January

New York /
Dec.December 29, 2016 10:50 AM

Pending home sales fell 2.5 percent in the month of November, another indicator that the market is cooling off as 2017 approaches.

Economists Surveyed By The Wall Street Journal had actually expected pending home sales to rise 0.5 percent in November.

Lawrence Yun, the top economist for the National Association of Realtors, said the expected spike in interest rates combined with limited inventory and rising prices was largely to blame. The pending home sales index, which reached a seasonally adjusted 107.3 in November, dipped 0.4 percent year-over-year. The NAR considers 100 to be a healthy figure on the index.

“This was a disappointment relative to expectations for an increase during the month and a more downbeat signal on housing activity than the move up in mortgage purchase application volumes that also occurred in November,” J.P. Morgan Chase economist Daniel Silver said in a note to clients, according to the Journal.

Mortgage rates and prices are going up, which could lead to a weaker housing market in 2017, according to experts.

Earlier this month, the Federal Reserve raised interest rates for the first time since before the Financial Crisis. It also indicated it will raise short-term interest rates more aggressively next year than initially planned.

U.S. mortgage rates have since hit a two-year high, and the sales of new homes around the country spiked last month as buyers rushed to sign contracts.  [WSJ] Miriam Hall


Related Articles

arrow_forward_ios
Michael Gianaris, Julia Salazar and Jabari Brisport support the bill to abolish 421a. (Getty, Jabari Brisport via Twitter, 544 Union)
Lawmakers vow to end 421a as tenants sue landlords getting tax break
Lawmakers vow to end 421a as tenants sue landlords getting tax break
(Getty)
Average size of home mortgage nears $400K
Average size of home mortgage nears $400K
Home prices surpass 2006 peak levels. (Getty, Unsplash, Photo Illustration by Alison Bushor for The Real Deal)
US home prices surged 9.5% in November
US home prices surged 9.5% in November
(iStock)
Forbearance rate stubborn among home-mortgage borrowers
Forbearance rate stubborn among home-mortgage borrowers
(iStock)
South Florida hits record $5B in residential sales volume in December
South Florida hits record $5B in residential sales volume in December
(Illustration by The Real Deal)
Americans bought 5.6M homes last year — the most since the bubble
Americans bought 5.6M homes last year — the most since the bubble
(Illustration by The Real Deal)
How builders are changing America’s suburbs to fit the times
How builders are changing America’s suburbs to fit the times
The median existing-home price exceeded $300,000 for the first time last year (iStock)
Vicious cycle creates “huge supply crunch,” pushing home prices up
Vicious cycle creates “huge supply crunch,” pushing home prices up
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...