U.S. pending home sales fall for second straight month in December

WASHINGTON (Reuters) - Contracts to buy U.S. previously owned homes fell for a second straight month in December amid record low inventory. The National Association of Realtors (NAR) said on Thursday its Pending Home Sales Index, based on signed contracts, dropped 3.8% last month to 117.7. Pending home sales fell in all four regions. Economists polled by Reuters had forecast contracts, which become sales after a month or two, dipping 0.2%. Pending home sales decreased 6.9% in December on a year-on-year basis. "Pending home sales faded toward the end of 2021, as a diminished housing supply offered consumers very few options," said Lawrence Yun, NAR chief economist. An acute shortage of previously owned homes is hampering sales. Despite rising mortgage rates, which together with high home prices are reducing affordability, demand for housing is likely to remain strong this year. "The market will likely endure a minor reduction in sales as mortgage rates continue to edge higher," said Yun. A total of 6.12 million previously owned homes were sold in 2021, the most since 2006 and up 8.5% from 2020. The Federal Reserve on Wednesday said it is likely to start raising interest rates in March to tame high inflation. Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

U.S. pending home sales fall for second straight month in December
U.S. pending home sales fall for second straight month in December

WASHINGTON (Reuters) - Contracts to buy U.S. previously owned homes fell for a second straight month in December amid record low inventory.

The National Association of Realtors (NAR) said on Thursday its Pending Home Sales Index, based on signed contracts, dropped 3.8% last month to 117.7. Pending home sales fell in all four regions.

Economists polled by Reuters had forecast contracts, which become sales after a month or two, dipping 0.2%. Pending home sales decreased 6.9% in December on a year-on-year basis.

"Pending home sales faded toward the end of 2021, as a diminished housing supply offered consumers very few options," said Lawrence Yun, NAR chief economist.

An acute shortage of previously owned homes is hampering sales. Despite rising mortgage rates, which together with high home prices are reducing affordability, demand for housing is likely to remain strong this year.

"The market will likely endure a minor reduction in sales as mortgage rates continue to edge higher," said Yun.

A total of 6.12 million previously owned homes were sold in 2021, the most since 2006 and up 8.5% from 2020.

The Federal Reserve on Wednesday said it is likely to start raising interest rates in March to tame high inflation.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.