Us Pending Home Sales Tumble to Record Low in January
Contracts to buy US 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 (NAR) said its Pending Home Sales Index, based on signed contracts, dropped 4.6% last month to 70.6, an all-time low. Economists had forecast contracts falling 1.3%, but the actual decline was much higher, reflecting the significant impact of elevated mortgage rates and house prices.
- The escalating affordability crisis in the housing market could have broader implications for consumer spending and economic growth if left unchecked.
- How will policymakers respond to the growing trend of rising home prices and mortgage rates, particularly among low-income households who are often most vulnerable to these price pressures?