- Wednesday, October 16, 2024
According to the monthly index released by the National Association of Realtors (NAR), pending home sales fell 1.5% in October, reaching a record low reading of 71.4. This is the lowest level since the index was started in 2001. Economists, surveyed by the Wall Street Journal, had expected pending home sales to decline by 2% in October.
Key Details
Over the past year, pending transactions have seen an 8.5% decrease. Regionally, sales rose in the Northeast but experienced declines in the Midwest, South, and West.
The Big Picture
In October, mortgage rates surged, resulting in a frozen housing market. However, there has been some relief in November as expectations grow that the Federal Reserve is finished with interest rate hikes.
What the NAR Said
According to Lawrence Yun, NAR chief economist, "Recent weeks' successive declines in mortgage rates will help qualify more home buyers, but limited housing inventory is significantly preventing housing demand from fully being satisfied."
Market Reaction
On Thursday, stocks (DJIA, SPX) opened higher, and the 10-year Treasury yield (BX:TMUBMUSD10Y) rose to 4.34% in early morning trading.
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