US Pending Home Sales fall by 3.8% in December

Pending Home Sales in the US fell by 3.8% on a monthly basis in December following November’s 2.3% decline (revised lower from a 2.2% decline), data published by the US National Association of Realtors showed on Thursday.

The new data was well below expectations for a decline of 0.2% MoM. The Pending Home Sales Index fell to 117.7 in December from 122.3 (downwardly revised from 122.4) in November.

Pending home sales data denotes two straight months of declines, according to the National Association of Realtors. All four major U.S. regions posted both month-over-month and year-over-year drops in contract activity.

The data provides a forward-looking indicator of home sales based on contract signings, fell 3.8% to 117.7 in December. Year-over-year, transactions decreased 6.9%. An index of 100 is equal to the level of contract activity in 2001.

Pending home sales faded toward the end of 2021, as a diminished housing supply offered consumers very few options. Mortgage rates have climbed steadily the last several weeks, which unfortunately will ultimately push aside marginal buyers.