Pending sales of US homes increased for a fourth month in November as homebuyers took advantage of falling mortgage rates...
Source: Bloomberg
That lifted the total pending home sales index to its highest since early 2023...
Source: Bloomberg
A National Association of Realtors measure of contract signings rose 2.2% to 79, the highest since February 2023. The median estimate in a Bloomberg survey of economists called for a 0.8% increase.
“Consumers appeared to have recalibrated expectations regarding mortgage rates and are taking advantage of more available inventory,” NAR Chief Economist Lawrence Yun said in a statement.
“Buyers are no longer waiting for or expecting mortgage rates to fall substantially.”
We shall see, Larry!
Pending sales were led by a 5.2% monthly increase in the South, with smaller advances in the West and Midwest. Activity declined in the Northeast.
But, given the lags in the home-buying process, we suspect this hope-filled rebound in home sales will be very short-lived...
Source: Bloomberg
...and don't believe that more Fed cuts will help...
Source: Bloomberg
The Fed is cornered.
