US pending home sales plummeted 6.3% in April, the largest decline since September 2022, signaling a weak spring selling season. The National Association of Realtors data indicates that elevated mortgage rates and asking prices are deterring prospective buyers. The drop exceeded all economist estimates in a Bloomberg survey, with the West experiencing the most significant regional decrease in over two and a half years.
The April data on US pending home sales reveals a significant contraction in housing market activity, with the National Association of Realtors' index of contract signings plummeting 6.3% to 71.3. This marks the most substantial monthly decrease since September 2022 and notably exceeded the pessimistic forecasts of all economists surveyed by Bloomberg, signaling a weaker-than-anticipated spring selling season. The downturn is primarily attributed to persistent affordability challenges, as prospective buyers contend with high asking prices and elevated borrowing costs. The regional impact is also noteworthy, particularly in the West, which experienced its largest decline in pending sales in over two and a half years. This data underscores the acute sensitivity of the housing market to current mortgage rates and price levels, suggesting a material cooling trend that could have broader economic implications if sustained.
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