Pending home sales declined 2.0% in August to a level of 88.4 on the National Association of Realtors’ Pending Home Sales Index. Compared with August 2021, pending home sales sank 24.2%.
“The direction of mortgage rates–upward or downward–is the prime mover for home buying, and decade-high rates have deeply cut into contract signings,” stated NAR Chief Economist Lawrence Yun. “If mortgage rates moderate and the economy continues adding jobs, then home buying should also stabilize.”
Regionally, pending home sales fell 3.4% in the Northeast, 5.2% in the Midwest and 0.9% in the South. Pending home sales in the west increased 1.4%. Compared with August 2021, every region experienced double-digit declines.
A Pending Home Sales Index level of 100 is equal to the level of contract activity in 2001.