Pending Home Sales Slump as Mortgage Prices Weigh –The Wall Street Journal

The Wall Street Journal

The number of homes going under contract in the U.S. fell sharply in April, as high mortgage prices continue to hamper the market, according to a monthly index.

Here are the main takeaways from the National Association of REALTORS®’ report released Thursday.

The pending home sales index, a leading indicator of house sales based on contract signings, sank 6.3% in April, more than offsetting the 5.5% rise in March.

Economists polled by The Wall Street Journal had expected a smaller fall of 1.0%.

Pending home sales fell 2.5% on year.

“Despite an increase in housing inventory, we are not seeing higher home sales. Lower mortgage rates are essential to bring home buyers back into the housing market,” NAR Chief Economist Lawrence Yun said.

Pending home sales fell on month in all four U.S. regions covered by the index. They declined most in the West, following by the South, Midwest and Northeast.

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