The index is based on a sample of transactions that covers about 40% of multiple listing service data each month. An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.
“Although declining mortgage rates did not induce more homebuyers to submit formal contracts in November, it has sparked a surge in interest, as evidenced by a higher number of lockbox openings,” said Lawrence Yun, NAR chief economist.
Even though this was a more negative report than we would like. sales are expected to improve in 2024 as per Lawrence Yun. Here was his statement in regards to moving forward from here, “With mortgage rates falling further in December – leading to savings of around $300 per month from the recent cyclical peak in rates – home sales will improve in 2024.”
The next Pending Home Sales report will be released on January 26th for the month of December.
Source : https://bit.ly/2EbatTN
By: Jon Iacono