US pending home sales jump 8.1% in January, more than estimates

By Ovunc Kutlu

ISTANBUL (AA) - US pending home sales jumped 8.1% in January 2022, much higher than market estimates and rising for the second consecutive month, according to data released by the National Association of Realtors (NAR) on Monday.

The figure for December, which ended six consecutive months of decline, was revised down to a 1.1% increase, from a gain of 2.5%.

The market expectation for the figure was to show an increase of 1% in January.

Annually, however, pending home sales were down 24.1% year-on-year, according to a NAR statement.

"Buyers responded to better affordability from falling mortgage rates in December and January," said Lawrence Yun, the association’s chief economist.

"Home sales activity looks to be bottoming out in the first quarter of this year, before incremental improvements will occur," Yun said. "But an annual gain in home sales will not occur until 2024."

Pending home sales measure the change in the number of houses under contract to be sold, but still awaiting the closing transaction. They exclude new home construction.