According to the National Association of Realtors, U.S. pending home sales slid for the fifth consecutive month in October 2022. Three of four U.S. regions recorded month-over-month decreases, and all four regions recorded year-over-year declines in transactions.
The Pending Home Sales Index (PHSI), a forward-looking indicator of home sales based on contract signings, sank 4.6% to 77.1 in October. Year-over-year, pending transactions slipped by 37.0%. An index of 100 is equal to the level of contract activity in 2001.
"October was a difficult month for home buyers as they faced 20-year-high mortgage rates," said NAR Chief Economist Lawrence Yun. "The West region, in particular, suffered from the combination of high interest rates and expensive home prices. Only the Midwest squeaked out a gain."
"The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November."
Pending Home Sales Regional Breakdown