Pending Home Sales fell 7.7% from March to April per the National Association of REALTORS® (NAR), coming in well below estimates of a modest decline. Sales were also 7.4% lower than they were a year earlier. This report measures signed contracts on existing homes, making it an important forward-looking indicator for closings on these homes as measured in the Existing Home Sales report.
What’s the bottom line? The Pending Home Sales index took a big turn lower in April after a strong reading in March, with NAR’s Chief Economist, Lawrence Yun, explaining, “The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market.”