FAST FIVE: US Pending Home Sales Tumbled To 11 Year Lows (Ahead Of Recent Rate Spike)

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US Pending Home Sales Tumbled To 11 Year Lows (Ahead Of Recent Rate Spike) With mortgage rates soaring (now shockingly above 7% amid the fastest rise in history), it's no surprise that analysts expected pending home sales to slide further in August (latest data) and they were right.

Pending Home Sales fell 2.0% MoM (more than the 1.5% MoM decline expected) pushing the index down 22.5% YoY.

Source: Bloomberg This is the 9th monthly decline in the last 10 months to its lowest since May 2011 (ex-COVID lockdowns).

“Only when inflation calms down will we see mortgage rates begin to steady.” Pending home sales are often looked to as a leading indicator of existing-home purchases given properties typically go under contract a month or two before they're sold.

Finally, and perhaps most notably, as we noted previously, according to the Atlanta Fed, as of a few weeks ago, the median American household would needed to spend 44.5% of their income to afford payments on a median-priced home in the US, the highest percentage on record with data going back to 2006.

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