Dec 1, 2023 - Economy
Pending home sales neared record low in October as mortgages approached 8%
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Pending home sales just hit their lowest point in history, outside the first months of the COVID crisis when the economy nearly ground to a halt.
Why it matters: Pending home sales, or deals that have gone into contract, are a leading indicator for activity in the U.S. housing market.
- The October data means that actual home sales, which are also near record lows, will continue to be sluggish for the next few months.
What we're watching: The 30-year fixed mortgage rate declined sharply in November, so that could entice a few more buyers back into the market.
- The average mortgage is now at about 7.2%, after stretching toward a sky-high 8% in October.
