Sales of pending homes reached their lowest level in more than three years in January, according to the National Association of Realtors, declining 4.7 percent.
The drop brings the Pending Homes Sales Index, which is based on contract signings , to 104.6 from 109.8 in December.
Despite a good economy and increasing incomes, the year is off to a shaky start for pending sales, according to NAR Chief Economist Lawrence Yun, who credited the decline with “woefully low” supply levels and an increase in mortgage rates.
“The lower end of the market continues to feel the brunt of these supply and affordability impediments,” Yun said in a statement.
The January pending sales numbers are 9.5 percent less than they were in January 2017.
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