- Prior was +2.2%
- Index 74.2 vs 79.0 prior
- Year-over-year, pending transactions declined 5.0%
- West lagged at -10.3% m/m
The index is at the lowest since August. Some housing numbers have been surprisingly strong lately but this is a sign that high mortgage rates are problematic. Activity fell more sharply in the high-priced regions of the Northeast and West, where elevated mortgage rates have appreciably cut affordability.
“After four straight months of gains in contract signings, one step back is not welcome news, but it is not entirely surprising,” said NAR Chief Economist Lawrence Yun. “Economic data never moves in a straight line. High mortgage rates have not significantly dented housing demand due to greater numbers of cash transactions.”
Given some of the optimism in markets around growth and the minimal rate cuts priced in for the US (along with deficits likely staying high) and the housing market is a vulnerable space in 2025.