According to the National Association of Realtors, the contracts to purchase previously owned homes fell in November. The US pending homes sales data revealed on Friday, December 28th, might have shown signs of weakness in the US housing market, a dithered US economy and a squeezed monetary condition.
Although the October index remained unrevised, the National Association of Realtors declared a 0.7 percent fall in pending home sales index from October’s 101.4.
The news came as a shock to many investors, as multiple forecast polls had predicted a rise above 0.7 percent in the pending home sales. While this report came in as an unexpected shock, several analysts had been quoted saying that, this might be the signs of a dithered economy, which had been squeezing on both corporate and non-corporate level, despite a strong US economic upbuilding.
The pending home contracts is a forward-looking marker of the housing market, and, as the data showed a 0.7 percent fall in the US pending home sales, the health of housing market does not appear to be salubrious in 2019.
Apart from an equivocated US economy, the housing market had been muzzled by higher mortgage rates and labor shortages.
The chief economist of National Association of Realtors, Lawrence Yun, had been quoted saying on Friday, that the pending home sales data had been reflecting an unfavorable mortgage rate conditions.