Pending Home Sales fell for the second straight month, declining 4.6% from December to January, as reported by the National Association of REALTORS® (NAR). This metric reflects signed contracts on existing homes, which typically precede closings by one to two months, and serves as a key predictor of housing market performance.
What’s the bottom line?
NAR Chief Economist, Lawrence Yun, commented, “It is unclear if the coldest January in 25 years contributed to fewer buyers in the market, and if so, expect greater sales activity in upcoming months.” He further noted that while high home prices and mortgage rates have impacted affordability, even a modest decrease in rates could “ignite buyer interest, given rising incomes, increased jobs and more inventory choices.”
