Pending home sales in the U.S. hit the lowest level since October 2014 as low supply levels and rising mortgage rates continue to affect contract signings despite a strong economy and job markets, according to the National Association of Realtors.
The pending home sales index dropped 4.7% to 104.6 in January from a downwardly revised 109.8 in December 2017. The index was 3.8% lower from a year ago.
"With the cost of buying a home getting more expensive and not enough inventory, some prospective buyers are either waiting until listings increase come spring or now having to delay their search entirely to save up for a larger down payment," NAR Chief Economist Lawrence Yun said.
The number of available listings at the end of January was 9.5% lower than a year ago, an all-time low for the month, NAR said.
