The Pending Home Sales Index fell 5.3% below November 2007 when it was 86.9, based on contracts signed in November. Monthly metrics fell also (4.0%) but it is the annual numbers that are most significant in the PHSI.
Peter Boockvar of Miller Tabak adds: “November Pending Home Sales fell 4% m/o/m, above forecasts of -2.3% and October was revised down by .9% to a drop of 6%. The Fed’s announcement to buy MBS directly occurred at the end of Nov and thus the subsequent drop in mortgage rates didn’t influence the data much and based on the Mortgage Bankers Assoc data seen over the past 6 weeks, only a reaction in refi’s has been seen and not with purchases. The true test of the government experiment of bullying mortgage rates lower and possibly fixing them at 4.5% will come in the Spring when historically half of all the year’s sales take place.”
Economic Slump Weakens Pending Home Sales
NAR January 06, 2009
Pending Sales of Existing Homes Fell 4% in November
Bloomberg, Jan. 6 2008