US Pending Home Sales Fall Sharply in December as Mortgage Rates Climb Above 7%

The 5.5% monthly decline ends a four-month streak of gains, with affordability challenges hitting pricier regions hardest.

The National Association of Realtors reported a 5.5% drop in pending home sales in December, marking the lowest level since August and a 5% decline compared to the previous year.
The 30-year fixed mortgage rate rose from 6.68% to over 7% in December, creating an affordability barrier for many buyers.
The Northeast and West regions saw the steepest declines, with contract activity falling 8.1% and 10.3% respectively, due to higher home prices and mortgage rates.
Homes are taking longer to sell, with the average listing sitting on the market for 54 days, the slowest pace in five years, according to Redfin.
While new listings increased 37% in January, rising inventory may not immediately offset the challenges posed by high mortgage rates and elevated home prices.