Home Sales Fall 4.1% in February for Fourth Month in a Row – By Tim Smart (US News) / March 25, 2022
Rising mortgage rates and limited inventory have put a damper on sales.
Pending home sales fell 4.1% in February, as buyers confronted rising mortgage rates and tight inventories, the National Association of Realtors reported on Friday.
The drop follows a report on existing home sales last week, which showed a 7.2% decline.
“It is still an extremely competitive market, but fast-changing conditions regarding affordability are ahead,” NAR Chief Economist Lawrence Yun said. “Consequently, home sellers cannot simply bump up prices in the upcoming months, but need to assess the changing market conditions to attract buyers.”
Contracts typically take about two months to finalize, so pending home sales presage a drop next month when data on existing home sales is released for March.
