The latest numbers show that home sales are still in the tank throughout the country, despite mortgage rates that are at near 50-year lows.
Pending sales of existing U.S. homes dropped to a seven-year low in November, data showed on Tuesday, as rising job losses and a deepening economic recession kept potential house buyers on the sidelines.
The National Association of Realtors Pending Home Sales Index, based on contracts signed in November, dropped 4.0 percent to 82.3, the lowest level since the series started in 2001. That was worse than economists’ expectations for a 0.1 percent drop.
November’s reading was 5.3 percent lower than a year-ago and October’s pending home sales index was revised down to 85.7.
“Mounting job losses and very weak consumer confidence deterred home buyers from signing contracts in November,” said Lawrence Yun, NAR chief economist. “December’s housing market activity could be comparably lower due to ongoing problems in the economy.”