Pending home sales have reached a record low, dropping by 1.5 percent in October and 8.5 percent over the year, marking the lowest level since 2001.
The decline is most pronounced in the West, Southwest, and Northwest.
Mortgage rates have risen, making the market less affordable. (Trending: Biden Impeachment Vote Comes To House Floor)
According to UK’s Daily Mail, “The Pending Home Sales Index from the National Association of Realtors (NAR) found transactions slumped 1.5 percent in a month.”
“Over the year it means sales dropped 8.5 percent,” the outlet continued.
Adding, “It brought the NAR’s index down to 71.4 out of 100 – its lowest figure since it began in 2001. An index of 100 indicates it is equal to the level of activity at the start of the millennium.”
NAR chief economist Lawrence Yun said, “During October, mortgage rates were at their highest, and contract signings for existing homes were at their lowest in more than 20 years.”
“Recent weeks’ successive declines in mortgage rates will help qualify more home buyers, but limited housing inventory is significantly preventing housing demand from fully being satisfied,” he continued.
“Multiple offers, of course, yield only one winner, with the rest left to continue their search,” said the economist.
“In real terms, it means somebody purchasing a $400,000 home in November 2021 would pay around $1,623 a month for their mortgage. This analysis assumes a 5 percent downpayment,” explained The Daily Mail.
“But the same buyer today faces monthly payments of $2,585 – more than $1,000 extra,” added the outlet.
Home prices have hit a record high, with year-on-year prices rising nearly 4 percent in 2023.
Polling indicates that voters are increasingly blaming President Biden for the worsening economic situation, with only 39 percent expressing confidence in his ability to handle the economy.
Most Popular:
‘Smoking Gun’ Email Uncovered Between Joe Biden And Hunter
Olympic Gold Medalist Sentenced For Jan 6
Tucker Carlson Reveals The Moment He Became A Full-Blown Trump Supporter
