NAR: Pending Home Sales Fell 7.3% in September as Index Hit Lowest Level Since 2001
WASHINGTON — The National Association of Realtors (NAR) reported on October 20 that pending home sales fell 7.3% in September from the previous month and 11.3% from a year earlier, with all four U.S. regions posting monthly and annual declines. The drop was far steeper than the 0.5% decline expected in a Reuters survey. According to Reuters and The Wall Street Journal, the Pending Home Sales Index fell to 66.0, its lowest level since the series began in 2001, down from 71.2 in August.
Pending home sales count contracts signed but not yet closed and are considered a leading indicator of existing-home sales, typically converting to closings within one to two months. By region, the West saw the largest monthly drop at 9.2% (down 15.0% year over year), followed by the South at 8.2% (down 12.0%), the Midwest at 6.5% (down 8.7%) and the Northeast at 4.2% (down 9.4%).
NAR Chief Economist Lawrence Yun said market conditions weakened in September due to fast-rising mortgage rates, noting that while job growth and income gains can support home purchases, housing affordability is more affected by changes in mortgage rates. He said mortgage rates could be topping out given that they have already risen much more than the Federal Reserve's short-term rate hikes, though rising energy prices and the resulting inflationary pressure are highly uncertain.
Regional index readings were 49.3 in the West, 79.2 in the South, 67.3 in the Midwest and 59.0 in the Northeast. The average 30-year fixed mortgage rate reached 7.40 percent last week, its highest level in nearly three years, according to Freddie Mac.
Yun added that despite the difficulty of obtaining a mortgage, the limited number of distressed properties is ensuring steady home prices, and that buyers and sellers may simply be holding back until mortgage rates move favorably. (GSM, based on the NAR release and Reuters reporting)
Published by GSM · USA (original Chinese edition)
Photo: 图：纽约州 Long Island 郊区住宅区航拍（资料图）。Felton Davis 摄，CC BY 2.0，经 Wikimedia Commons。Photo: Aerial view of suburban neighborhoods on Long Island, New York (file photo). Felton Davis, CC BY 2.0, via Wikimedia Commons.
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