What was the percentage decrease in pending home sales in January 2025 compared to the previous month?

Pending home sales in January 2025 fell by 4.6% compared to the previous month.

How did the severe weather impact pending home sales in January?

It is unclear if the severe weather directly impacted pending home sales, but economists suggest it might have contributed to fewer buyers in the market, potentially leading to increased sales activity in upcoming months.

Which region experienced the largest year-over-year decline in pending home sales in January?

The South experienced the largest year-over-year decline in pending home sales, with an 8.8% decrease.

How have high mortgage rates affected housing affordability?

High mortgage rates have strained housing affordability, as the monthly mortgage payment on a $300,000 home increased by an extra $50 to $1,590 compared to a year ago.

7 sources·Business

US Pending Home Sales Hit Historic Low Amid Rising Mortgage Rates and Prices

Pending home sales in the US dropped to a record low in January due to high mortgage rates and home prices, exacerbated by severe weather.

71%

29%

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This drop in sales also came despite the fact that the inventory of homes for sales in January, including houses that were under contract but not yet sold, increased by 17% compared with last year, growing on an annual basis for the 14th month in a row, according to Realtor.com.
Pending home sales drop to the lowest level on record in January
NBC News·21d
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This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
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Center
This outlet is balanced or reflects centrist views.
The steady decline in mortgage rates rates this year hasn't been enough to change the affordability equation for many prospective home shoppers, especially first-time buyers who don’t have equity from an existing home to put toward a new home purchase.
Average US rate on a 30-year mortgage falls for sixth-straight week
ABC News·21d
Reliable
This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
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Center
This outlet is balanced or reflects centrist views.
Mortgage rates fell for a sixth consecutive week to the lowest level in more than two months.
Mortgage rates fall to lowest level in over 2 months
Fox Business·21d
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Leans Right
This outlet slightly leans right.
The steady decline in mortgage rates rates this year hasn’t been enough to change the affordability equation for many prospective home shoppers, especially first-time buyers who don’t have equity from an existing home to put toward a new home purchase.
Average US rate on a 30-year mortgage falls for sixth-straight week to lowest level since December
Associated Press·21d
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This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
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Center
This outlet is balanced or reflects centrist views.

Feb 27th, 2025, 2:28 PM ET

Summary

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In January, pending home sales in the US fell 4.6% to an all-time low, driven by increased mortgage rates averaging between 6.91% and 7.04%, and unprecedented home prices. The National Association of Realtors reported a 5.2% year-over-year decline in transactions, particularly impacted in the South. Despite some improvement in home inventory, the overall market remains sluggish, raising concerns about affordability as annual home prices surged for the 19th consecutive month. Economists suggest weather may have affected buyer activity but expect sales to adjust soon.

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Pending home sales in the US declined to an all-time low in January, attributed to factors such as high mortgage rates and record-high home prices, which strain affordability for buyers.
Despite weather conditions possibly affecting buyer activity, the general trend shows a significant decrease in pending transactions across various regions, indicating ongoing challenges in the housing market.
The increase in home inventory may help future sales, but regional disparities remain that hinder access for buyers in many areas.

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