Pending home sales in the U.S. stalled in September, as concerns over the job market kept buyers cautious despite falling mortgage rates, according to Bloomberg. The National Association of Realtors’ index of contract signings held at 74.8, below economists’ expectations, following a 4.2% rise in August. While home prices are cooling and the “lock-in effect” is easing, regional results varied, with gains in the South and Northeast but declines in the West and Midwest. Economists expect the housing market to gradually recover as mortgage rates remain near three-year lows, supporting affordability and inventory growth. They write:
Pending sales of existing US homes stalled in September, suggesting anxiety about the job market kept potential buyers sidelined despite a welcome easing in mortgage rates.
An index of contract signings held at 74.8 after climbing a revised 4.2% a month earlier to the highest level since March, according to National Association of Realtors data released Wednesday. Economists expected a 1.2% increase, based on the median estimate in a Bloomberg survey. […]
Even with middling results for last month, housing economists see the resale market slowly thawing after several years of lackluster demand. Mortgage rates have shown signs of stabilizing below 6.5%, and home prices are cooling. […]
Pending-homes sales tend to be a leading indicator for previously owned homes, as houses typically go under contract a month or two before they’re sold.
Read more here.
