The signed contracts for existing houses dropped sharp 5.5% in the previous month and, according to the National Association of Realors, by 5% compared to the previous year.
The decline followed four months in a row and the index was at the lowest level since August.
These so -called sales are an indicator of future closings and the latest indicator of activities on the market. In December, buyers in December were exposed to a large jump in the mortgage interest, which may have been steamed.
The average interest rate for the 30-year-old fixed mortgage rose on December 6th from 6.68% to a maximum of 7.14% on December 19. The brokers said prices, but the 7% brand seems to be an emotional barrier for buyers.
The sale of newly built houses that are also based on signed contracts recorded to win after the US people counting in December, but the house builders have aggressively shop to bring customers to the door.
The pending sales fell back in all regions, with the west and northeast to record the largest monthly declines of 8.1% or 10.3%. Real estate prices are highest in these regions.
“Contract activity was more important in the high -priced regions of northeast and west, where increased mortgage interests have reduced the affordability,” said Lawrence Yun, chief economist of the National Association of Realors. “Job gains usually have a greater influence in more affordable regions. It is unclear whether it has affected the time of purchases more than the usual winter settlement.”
The prices are still stubborn and rise across the country. The annual profits accelerated late autumn and early winter, as was read from the S&P Case-Shiller National Home Price Index.
The demand from the house builders does not seem to be returning in January. According to the Mortgage Bankers Association, the mortgage applications for buying a house were 7% lower last week than a year ago a year ago.
According to a new report by Redfin, houses with the slowest price have been selling for five years. Until January 26th, the typical hide -horseman, which was under contract, ended on the market for 54 days before the seller accepted an offer, the longest span since March 2020 and a week longer than this time last year.
The weakness comes when the delivery of houses for sale finally increases significantly. According to Realtor.com, the number of newly listed houses in January in January increased a little more than 37%.
“The shift in the seller activities could mark a turning point in the high mortgage-induced patf situation between buyers and sellers,” said Danielle Hale, chief economist at Realtor.com. “The increase is probably due to a certain rest of the lower mortgage interests of the case that could fade.”