Pending sales in the US reached an all-time low due to high mortgage rates in January. Home pricesand perhaps the terrible weather has hindered people trying to buy last month.
The National Association of Realtors said Thursday that the pending home sales index, a measure of home sales based on contract signatures, fell 4.6% last month to 70.6.
Pending transactions fell 5.2% from the same period last year.
The Midwest, South and West reduced the moon months by several months, with the most significant decrease in the South.
Despite strong winds and cold temperature growth, sales in the northeast rose modestly.
“It is unclear whether January of 25, the coldest month of 2015, contributed to a fewer buyers' contributions in the market. If so, we look forward to greater sales activities in the coming months,” NAR chief economist Lawrence Yun said in a statement. “But it is clear that the rising prices of homes and rising mortgage rates have left affordable prices nervous.”
The mortgage rate in January was between 6.91% and 7.04%.
On Friday, NAR said sales of previously occupied US homes have been seasonally adjusted to 408 million units per year, from December last month, from 4.9%.
Sales increased 2% compared to January last year, marking the fourth annual increase.
However, according to Factset, the latest home sales weren't enough for the pace economists the 41 million pace economists were hoping for.
Home prices have risen annually for the 19th consecutive month.
The median national selling price rose 4.8% to $396,900 from the previous year in January.
The U.S. housing market is in a sales recession dating back to 2022, when mortgage rates began to rise from lows during the pandemic era.
Sales of previously occupied US homes fell to their lowest levels last year in nearly 30 years.
The publicly-published home builder shares were punished this year, and their prices slid again on Thursday.
The tariffs threatened by President Trump have heightened sector anxiety as the prices of wood and metals could increase.
Large-scale deportation under the Trump administration can also increase the costs of builders.
Builder Toll Brothers has dropped by 11% this year. Dr. Houghton and Renner are down 7% to 9%. Beazer Homes fell nearly 17% in 2025.
