Us Pending Home Sales Tumble to Record Low in January
Contracts to buy U.S. previously owned homes plunged to a record low in January as higher mortgage rates and house prices reduced affordability for prospective buyers. The National Association of Realtors said on Thursday its Pending Home Sales Index, based on signed contracts, dropped 4.6% last month to 70.6, an all-time low. Economists polled by Reuters had forecast contracts falling 1.3% in January. Pending home sales decreased 5.2% from a year earlier.
- The sharp decline in pending home sales may signal a shift in the housing market, with buyers becoming increasingly wary of the current pricing and interest rate environment.
- What will be the long-term impact on the broader economy if a sustained decrease in home buying activity persists, potentially leading to reduced economic growth and increased household debt?