Pending home sales decreased 4.6% in January to a level of 70.6 on the National Association of Realtors Pending Home Sales Index. Compared with January 2024, pending home sales declined 5.2%.
On a regional month-over-month breakdown, the Northeast PHSI increased 0.3%, the Midwest decreased 2.0%, the South decreased 9.2% and the West fell 1.2%.
"It is unclear if the coldest January in 25 years contributed to fewer buyers in the market, and if so, expect greater sales activity in upcoming months," NAR Chief Economist Lawrence Yun said in a statement. "However, it's evident that elevated home prices and higher mortgage rates strained affordability."
January’s mortgage rates ranged from 6.91% to 7.04%. Compared to one year ago, the monthly mortgage payment on a $300,000 home increased by an extra $50 to $1,590.
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