The National Association of Realtors is reporting that overall pending home sales declined 2.6% in October. The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) declined to 102.1 in October. However, year-over-year, contract signings are down 6.7%, marking the tenth straight month of annual decreases. The Realtors say that recent rises in mortgage rates have reduced the number of eligible homebuyers. Indeed…The NAR’s Chief Economist Lawrence Yun notes:
“…that a similar period of decline occurred during the 2013 Taper Tantrum when interest rates jumped from 3.5 percent to 4.5 percent. After 11 months – November 2013 to September 2014 – sales finally rebounded when rates decreased. “But this time, interests rates are not going down, in fact, they are probably going to increase even further,” Yun noted.”
Click here to read the full release at the National Association of Realtors.
