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US Pending Home Sales fell by 1.2% MoM in March, less than the expected 1.6% drop, after sales fell 4.0% in February, the latest figures from the National Association of Realtors showed on Wednesday. That meant the US Pending Home Sales index fell to 103.7 in March, from 105.0 a month earlier.
Pending home sales dropped in March, signifying five straight months that contract activity has declined, according to the National Association of Realtors. Month-over-month, only the Northeast saw an increase in contract signings, while the three other major US regions experienced declines in transactions. All four regions reported decreases in year-over-year contract activity.
The Pending Home Sales Index (PHSI) is a forward-looking indicator of home sales based on contract signings, fell 1.2% to 103.7 in March. Year-over-year, transactions sank 8.2%. An index of 100 is equal to the level of contract activity in 2001.
The falling contract signings are implying that multiple offers will soon dissipate and be replaced by much calmer and normalized market conditions. As it stands, the sudden large gains in mortgage rates have reduced the pool of eligible homebuyers, and that has consequently lowered buying activity.
