Pending home sales saw a modest increase of 2% in February from January, but they remain near all-time lows, reflecting ongoing weakness in the housing market. A year-on-year comparison reveals a significant decline of 3.6% from February 2024, which was already a weak period for sales. While new and existing home sales experienced slight increases, the overall market remains subdued due to elevated mortgage rates and affordability challenges. Economists emphasize that a reduction in mortgage rates could stimulate demand and provide relief to prospective buyers struggling with high housing costs.
Pending home sales rose 2% in February, but remain near January's record lows, hinting at weak buying activity for the upcoming spring market.
Despite a monthly rise, contract signings for homes are still below normal levels, indicating ongoing challenges for homebuyers in the current market.
A decline in mortgage rates would enhance demand and improve housing affordability, which is currently one of the main concerns for prospective buyers.
Both new and existing home sales saw slight increases, yet these figures are still significantly below historical averages due to high mortgage rates.
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