Record-Low Pending Home Sales Plunge, Surpassing Financial Crisis Levels

Pending home sales in the US dropped 1.5% in October, reaching the lowest level since tracking began in 2001, even worse than during the financial crisis. The decline is attributed to high mortgage rates and a limited supply of homes for sale. While recent decreases in mortgage rates may help qualify more buyers, the low housing inventory continues to prevent housing demand from being fully satisfied. Sales fell in all regions except the Northeast, with the steepest decline in the expensive West. Home prices continue to rise, particularly in the high-end market where supply is relatively higher.