Mortgage rates are key in this report, with the average rate on the 30-year fixed mortgage soaring over 8% in mid-October before dropping sharply to 7.5% in the first week of November, according to Mortgage News Daily.
Analysts had expected the drop to cause a slight gain in pending sales, but apparently it wasn't enough, given steep home prices and tight supply.
Regionally, pending sales rose 0.8% month over month in the Northeast and 0.5% in the Midwest.
Mortgage rates are now solidly in the mid-6% range, but the supply of homes for sale is still very low.
"With mortgage rates falling further in December – leading to savings of around $300 per month from the recent cyclical peak in rates – home sales will improve in 2024," Yun added.
Persons:
Lawrence Yun, –, Yun
Organizations:
National Association of Realtors, Mortgage News, Midwest ., Builders, CNBC PRO