Pending Home Sales in Steep Decline

Pending home sales are often considered as a leading indicator of existing-home purchases. For the sixth month, U.S. pending home sales fell in November to the second-lowest on record. Higher borrowing costs and economic uncertainties continue to exclude many potential buyers out of the market. The National Association of Realtors index of contract signings to purchase previously owned homes took a hit. The index decreased to 73.9, exceeding estimates in a Bloomberg survey of economists. The doubling of borrowing costs, from the start of 2022 to present, has caused home sales and prices to decline. A University of Michigan survey indicates that current home-buying conditions are worse than the early 1980s.