Pending Home Sales Decline

[Gregory Reeves]

Pending home sales declined 7.7% compared to last month, and are down 7.4% compared to one year ago. Why does this matter? Pending sales are a forward-looking indicator of home sales based on contract signings. April's data is a sign of weakening demand. Mortgage rates surpassed 7% in April, dampening affordability and keeping buyers off the market. While inventory has picked up, you can't buy what you can't afford.