US Sales of Pending Homes Plunge 1.2% in March as Rates Soar

Source: National Association of Realtors

The index, gauging the sales of pending homes in the US, declined by 1.2% to 103.7 in March from the previous month. DJI is up +0.21%, DXY is up +0.73%.

• The pending sales have now fallen for the last five straight months, with the March declines taking transaction levels 8.2% lower than the previous year.
• NAR’s chief economist Lawrence Yun says the declining contract signings signal that multiple offers in the market will decline, leading to normalized sector conditions.
• Yun attributes the fall in contract signings to surges in mortgage rates which have priced out potential buyers. He expects the 30-day loan rate to hit 5.3% in the fourth quarter, with an average of 4.9% in the year and further higher at 5.4% next year.
• Yun says home prices are still in no danger of decline, although the price increases will fall steadily, taking the median home price 8% higher than the prior year.