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Pending Home Sales Increased 8.3% In December

By:
Vladimir Zernov
Published: Jan 26, 2024, 15:29 GMT+00:00

The National Association of Realtors expects that existing home sales would grow by 13% in 2024.

Pending Home Sales

In this article:

Key Insights

  • Pending Home Sales easily beat analyst expectations, supported by falling mortgage rates. 
  • Existing home sales are projected to grow at a robust pace in 2024 and 2025.
  • The National Association of Realtors expects that the 30-year fixed mortgage rate will be in the 6% – 7% range for most of 2024.

On January 26, the National Association of Realtors released Pending Home Sales report for December. The report indicated that Pending Home Sales increased by 8.3% on a month-over-month basis, compared to analyst consensus of +1.5%.

On a year-over-year basis, Pending Home Sales increased by 1.3%, while analysts expected that they would drop by 3.4%.

The National Association of Realtors forecasts a 13% increase in existing home sales in 2024 and a 15.8% increase in 2025. The annual median home price is projected to increase by 1.4% in 2024 and 2.6% in 2025.

The forecasts imply that Fed will cut interest rates four times while the 30-year fixed mortgage rate will be in the 6% – 7% range for most of 2024.

The National Association of Realtors commented: “The housing market is off to a good start this year, as consumers benefit from falling mortgage rates and stable home prices.”

U.S. Dollar Index has started to rebound as traders reacted to the better-than-expected Pending Home Sales report. Currently, U.S. Dollar Index is trying to settle above the 103.40 level.

Gold continues its attempts to settle below the $2015 level. Treasury yields are moving higher, which is bearish for gold markets.

SP500 is mostly flat as traders are cautious ahead of the weekend. Currently, SP500 is stuck in a tight 4890 – 4900 range.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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