According to data from the National Association of Realtors, pending home sales grew 1.4% month-over-month in April, beating estimates of 1%. This follows a gain of 1.7% in March (upwardly revised from 1.5%). The strongest region was the Northeast, growing at 6.6%, while the South region saw a decline of 0.7%, a potential trend reversal for both regions as the South saw the strongest year-over-year growth while the Northeast saw the weakest. The national index sits at 74.8, well below its pre-covid average of around 107 from 2015 to 2019.
The ABA Office of the Chief Economist believes this month’s pending home sales report reflects resiliency despite the effect of higher interest rates. The continued growth suggests that mortgage demand will remain steady in the near term, however the impact of higher energy prices and interest rates threatens long-term momentum.
