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Reuters
Contracts to buy U.S. previously owned homes unexpectedly fell in May, indicating sales could remain subdued for a while as potential buyers grapple with higher mortgage rates and prices.
The National Association of REALTORS® (NAR) said on Thursday its Pending Home Sales Index, based on signed contracts, dropped 2.1% last month to 70.8. Pending home sales fell in the densely populated South and the Midwest, which is considered a more affordable region. They rose in the Northeast and West.
Pending home sales dropped 6.6% in May on a year-on-year basis.
"The market is at an interesting point with rising inventory and lower demand," said NAR Chief Economist Lawrence Yun.
"The first half of the year did not meet expectations regarding home sales but exceeded expectations related to home prices," said Yun. "In the second half of 2024, look for moderately lower mortgage rates, higher home sales and stabilizing home prices."
