Economy

U.S. pending home sales fall 10.2% in September, better-than-expected

Sales of pending homes in the United States fell 10.2% in September, accumulating four months of retraction, said this Friday (28) the National Association of Realtors (NAR, its acronym in English). In the annual comparison, pending transactions fell by 31.0%. The monthly data came much worse than expected by the market, which was projecting a 5% drop, according to the Refinitiv consensus.

All four major regions recorded declines in transactions month-on-month and year-on-year.

“Persistent inflation has proven to be quite damaging to the housing market,” said NAR Chief Economist Lawrence Yun. “The Federal Reserve had to dramatically raise interest rates to contain inflation, which resulted in far fewer buyers and even fewer sellers.”

According to Yun, the “new normal” for mortgage rates could be around 7% for a while. “On a $300,000 loan, that translates to a typical monthly mortgage payment of nearly $2,000, compared to $1,265 just a year ago — a difference of more than $700 a month,” he calculated. .

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