Pending Home Sales Unexpectedly Plunge In January – Lowest Since July

After sliding for four straight months, analysts expected pending home sales to flatline in January (despite bounces in new– and existing-home sales). But, amid a collapse in mortgage applications (and jump in mortgage rates), pending home sales tumbled 2.8% MoM to the lowest level since July…

Source: Bloomberg

And while pending home sales are up YoY, that acceleration is slowing rapidly…

Source: Bloomberg

“There are simply not enough homes to match the demand on the market” Lawrence Yun, chief economist at the NAR, said in a statement.

Still, Yun said he expects inventory to rise in the coming months.

By region, contract signings fell in the West, Northeast and Midwest. In the South, the index for pending home sales rose to the highest since August.

The tumble in pending home sales should not be a total surprise as mortgage applications crashed by most since April (dropping for 5 of the last 6 weeks)…

Source: Bloomberg

With home purchase applications (as opposed to refis) collapsing to the lowest in 9 months…

Source: Bloomberg

As 30Y mortgage rates rise to their highest since September

Source: Bloomberg

Get back to work Mr.Powell!