Pending Home Sales Rose Last Month, 1st Time Since May 2022

Pending home sales increased in December 2022 for the first time since May 2022, a sign that lower mortgage rates are bringing some buyers back into the housing market, Anna Bahney reported for CNN.

Photo Insert: Cooling inflation and a resilient job market have many in the housing industry feeling optimistic that home-buying levels could improve as mortgage rates stabilize.

The pending sales index, based on signed contracts to buy a home rather than the final sales that are accounted for in existing home sales, improved by 2.5% from November to December, according to data released Friday from the National Association of Realtors (NAR).

“This recent low point in home sales activity is likely over,” said Lawrence Yun, NAR chief economist. “Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market.”

Not all regions saw the same levels of activity, however.

Pending sales dropped in the Northeast, where the index was down 6.5% in December from November; and in the Midwest, where the index was down 0.3%. The national turnaround was largely fueled by upticks in the West and the South.

Pending sales were up 6.1% in the South in December from November and rose 6.4% in the West. While economic uncertainty remains, cooling inflation and a resilient job market have many in the housing industry feeling optimistic that home-buying levels could improve as mortgage rates stabilize.

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