Pending home sales fell 2.5% in November

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

TRD LOS ANGELES /
Dec.December 29, 2016 08:30 AM
Home for sale at a Toll Brothers development in Hawthorn Woods, IL (Credit: Getty Images)

From the New York website: 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
AB 1482 is set to cap rents on units across the LA area (Credit: Wikipedia and iStock)

Here’s what California’s rent control bill means for LA County

Los Angeles homes (Credit: iStock)

SoCal home-buying saw most active July in 4 years amid falling mortgage rates

Scott Laurie, chief executive of Olson Co. and Christopher Thornberg, founding partner of Beacon Economics

How slow can you go? Statewide homebuilders tap brakes on new projects amid rising costs

Los Angeles homes (Credit: iStock)

In LA’s residential market, inventory is up and sales are down, Q2 report shows

L.A. rents increased despite a national slowdown.

It’s still unaffordable to live in LA: report

LA County is seeing more listings

Resi listings are up in LA County, but buyers are staying home

Realtor.com Chief Economist Danielle Hale and San Francisco

In the Bay Area, “affordable housing” is relative

CoreLogic's Andrew LePage and Orange County (Credit: Wikipedia)

SoCal housing market shows signs of life, with a caveat: report

arrow_forward_ios