PENDING PROBLEM

Pending home sales slipped 5.5% M-o-M in December and slid 5% Y-o-Y. This isn’t surprising, given the nearly one percentage point rise in 30-year mortgage rates since the recent low of 6.08% for the week ending 9-26-24. Moreover, absent seasonal adjustment, the Pending Homes Sales Index is at its lowest since 2001 when the NAR began reporting pending sales. Absent lower rates, sales will continue struggling.