Interest Rates and Price Increases Slow Home Sales Contracts
The National Association of Realtors (NAR) monthly report released April 27, showed pending home sales falling for the fifth consecutive month, down 1.2% in March and 8.2% year over year. Soaring home prices (up 20.2% from February 2021) and average interest rates standing at 5.11%, according to NAR chief economist Lawrence Yun, suggest that while the desire to purchase a home is still strong, ‘the financial capacity has become a major limiting factor.’ Read more.