Read next: Mortgage downturn: taking the long view
The Northeast PHSI sank to 68.7 in October, down 4.3% from last month and 29.5% from a year ago. The South PHSI dropped to 90.6 (-6.4% month over month and -38.2% year over year), and the West index plunged to 55.6 (-11.3% month over month and -46.2% year over year). Meanwhile, the Midwest index posted a 3.3% month-over-month increase to 83.5 in October. However, it was down 32.1% from last year.
“Pending home sales fell 4.6% in October, which is little surprise because mortgage rates peaked in that month,” NerdWallet mortgage expert Holden Lewis added. “We might see pending home sales bounce back the following month because mortgage rates have fallen back in November.”
Yun agreed: “The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”