US home contract signings dwindle for third straight month

According to data from the latest Freddie Mac survey, the average 30-year mortgage rate climbed to 3.89% last week, up from 2.97% during the same period the previous year.

NAR said the impending conclusion of the Federal Reserve’s asset purchase program in March and the impacts of the Russia-Ukraine war on global oil supply will likely impose further burdens on inflation and bring about more aggressive rate hikes.

“There’s also the possibility that investors may flee toward safer US Treasury bonds, which may result in temporary short-term relief to interest rates,” Yun said.

Broken down by US regions, the Northeast posted a 12.1% decrease in pending home sales to 84.3, the Midwest saw a 5.9% decrease to 104.4, and the South reported a 6.3% decrease to 134.6. Meanwhile, the West experienced a 1.5% increase in pending home sales, up to 95.2 month over month.