US pending home sales tumble for 6th straight month

ISTANBUL

US pending home sales dropped in November for the sixth consecutive month, according to data released by the National Association of Realtors (NAR) on Wednesday.

The index of pending home sales fell 4% to 73.9 last month, much more than the expected decline of 0.8%.

The index had tumbled 4.6% in October.

Pending home sales transactions dropped 37.8% year-on-year, according to a NAR statement.

“Pending home sales recorded the second-lowest monthly reading in 20 years as interest rates, which climbed at one of the fastest paces on record this year, drastically cut into the number of contract signings to buy a home,” said Lawrence Yun, the association’s chief economist.

“Falling home sales and construction have hurt broader economic activity.”

Yun, however, said that with mortgage rates falling throughout December, home buying activity “should inevitably rebound” in the coming months and help economic growth, noting that there are approximately two months of lag time between mortgage rates and home sales.

Pending home sales measure the change in the number of houses under contract to be sold, but still awaiting the closing transaction. They exclude new home construction.