When a home seller accepts an offer to buy, the closing process begins. During the closing process – which typically takes a few weeks – the home’s sale is considered pending. Pending home sales are a good indicator of future home sales, as most signed contracts lead to closed sales. Because of this, the National Association of Realtors tracks them each month. According to the most recent release, pending sales fell in November. Lawrence Yun, NAR’s chief economist, says higher mortgage rates slowed activity, but a rebound is on the way. “There are approximately two months of lag time between mortgage rates and home sales,” Yun said. “With mortgage rates falling throughout December, home buying activity should inevitably rebound in the coming months …” Year-over-year, contract signings were down in all regions, with the Midwest seeing the smallest drop and the West suffering the biggest decline from the year before. (source)
