US December pending residence gross sales -5.5% vs zero.zero% anticipated

• Prior was +2.2%
• Index 74.2 vs 79.zero prior
• Yr-over-year, pending transactions declined 5.zero%
• West lagged at -10.three% m/m

The index is on the lowest since August. Some housing numbers have been surprisingly sturdy currently however it is a signal that top mortgage charges are problematic. Exercise fell extra sharply within the high-priced areas of the
Northeast and West, the place elevated mortgage charges have appreciably minimize
affordability.

“After 4 straight months of positive factors in contract signings, one step again
shouldn’t be welcome information, however it isn’t fully shocking,” mentioned NAR Chief
Economist Lawrence Yun. “Financial knowledge by no means strikes in a straight line.
Excessive mortgage charges haven’t considerably dented housing demand on account of
better numbers of money transactions.”

Given a number of the optimism in markets round development and the minimal fee cuts priced in for the US (together with deficits probably staying excessive) and the housing market is a weak area in 2025.

This text was written by Adam Button at www.ubaidahsan.com.



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