Against expectations of a 0.6% rise, pending home sales in January plunged 2.8% MoM – the biggest drop since May.
The West – the most expensive region – saw the biggest decline, down 10.3% MoM with The Midwest also tumbling 5.2% MoM.
As mortgage rates have soared since the election (and mortgage applications tumbled), affordability has become a major issue according to NAR with pending home sales at the lowest in a year.
And it’s going to get a lot worse…
Lawrence Yun, NAR chief economist, says home shoppers in January faced numerous obstacles in their quest to buy a home.