From Yahoo Finance · · 1m
Home contract signings drop 4.7% from last year
Home contract signings fall 4.7% year-over-year as mortgage rates rise.
In brief
Home contract signings fall 4.7% year-over-year as mortgage rates rise. Home contract signings dropped 4.7% from last year due to higher mortgage rates. Originally reported by Yahoo Finance.
Home contract signings
Pending home sales climbed 0.3% in August from July but are down 4.7% from last year.
Mortgage rates rise
Mortgage rates rose over the summer to end August at 6.7% amid concerns about US national debt and the Iran War.
Lawrence Yun's statement
Lawrence Yun, NAR's chief economist, said buyers entered contracts despite higher mortgage rates but the market remains sluggish.
“Buyers steadily entered into contracts in August even though mortgage rates increased.”
Year-over-year decline
Contract activity declined year over year in all regions, with signings rising in the South and West in August.
Market slowdown
High mortgage rates and elevated prices have slowed home buying and selling to a crawl, with contract signings down 30% from pre-pandemic levels.
What happens next
Most housing market watchers expect sales to remain muted as mortgage rates stay above 7% for the rest of the year.
What matters most
Home contract signings dropped 4.7% from last year due to higher mortgage rates.
