Thu, 30 Jan 2025

Pending home sales drop sharply in December as mortgage rates surge back over 7%

Pending home sales in the U.S. fell in December as mortgage rates climbed again.

* Signed contracts on existing homes dropped 5.5% in December from November and 5% from last year.
* The decline was the largest monthly drop since August and marked a reversal of four consecutive months of gains.
* Buyers were likely deterred by rising mortgage interest rates, which jumped to 7.14% in December from 6.68% on December 6.
* Pending sales fell in all regions, with the West and Northeast seeing the biggest monthly drops at -8.1% and -10.3%, respectively.
* Home prices are still high and rising across the nation, with annual gains accelerating in late fall and early winter.
* Mortgage applications to purchase a home were 7% lower than last year's same week in January, according to the Mortgage Bankers Association.
* The typical home listing that went under contract sat on the market for 54 days before being sold, the longest span since March 2020.
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