U.S. pending home sales fell in February by the most since April as rising home prices and a shortage of available properties deterred buyers.
Has the U.S. housing market run out of steam? The pace of pending home sales nationwide fell in February by the most since April as rising home prices, pricier loans, and a shortage of available properties deterred buyers. The National Association of Realtors’ index of pending home sales decreased 10.6% from the prior month to 110.3, the lowest reading since May, according to data released Wednesday. Contract signings were down 2.7% from the same period in 2020 on an unadjusted basis. Surging home prices and low inventory are slowing the pandemic-era housing boom, evidenced by declines in contract signings in all four U.S. regions. In addition, severe winter weather limited purchases during February. At the same time the average rate for a 30-year fixed-rate mortgage has been increasing, which may affect buyer demand in the coming months.
