The National Association of Realtors is reporting that pending home sales were down 1.2% in March, 2022. The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) dropped to 103.7.
“The falling contract signings are implying that multiple offers will soon dissipate and be replaced by much calmer and normalized market conditions…As it stands, the sudden large gains in mortgage rates have reduced the pool of eligible homebuyers, and that has consequently lowered buying activity.” Said Lawrence Yun, the NAR’s chief economist.
“Fast-rising rents will encourage renters to consider buying a home, though higher mortgage rates will present challenges,” Yun said. “Strong rent growth nonetheless will lead to a boom in multifamily housing starts, with more than 20% growth this year. “