Pending Home Sales Index

The National Association of Realtors (NAR)’s Pending Home Sales Index is a leading indicator for the housing sector based on pending sales of existing homes. A sale is pending if a contract has been signed, but the sale has not closed. Typically, these sales close within two months of a contract signing.

The latest Pending Home Sales Index came in at 73.9 for November, which was a 4% decline from October and worse than forecast. Here’s an excerpt from the latest press release:

“Pending home sales recorded the second-lowest monthly reading in 20 years as interest rates, which climbed at one of the fastest paces on record this year, drastically cut into the number of contract signings to buy a home,” said NAR Chief Economist Lawrence Yun. “Falling home sales and construction have hurt broader economic activity.”