The National Association of Realtors is reporting that pending home sales were down 2% in August, 2022. The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) dipped to 88.4. The NAR says rising inflation and higher mortgage rates are driving the numbers.
“The direction of mortgage rates – upward or downward – is the prime mover for home buying, and decade-high rates have deeply cut into contract signings…”
“Only when inflation calms down will we see mortgage rates begin to steady.” Said Lawrence Yun, the NAR’s Chief Economist.